CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target by $1 to $33 on a forward P/E of 9.7x our 2024 EPS view, in line with peers. We up our 2023 EPS by $0.10 to $3.55 and 2024’s by $0.15 to $3.40. BAC posted Q3 2023 EPS of $0.90, an $0.08 earnings beat. We see total revenue of $100.7B (prior $99.8B) in 2023 and $100.4B ($98.9B) in 2024. In Q3 2023, total loans rose 2% and total deposits of $1.9T eased 3%. Total net interest income (NII) rose 4% Y/Y and was up 2% Q/Q, while noninterest income was flat Y/Y and -2% Q/Q. Compared to NII of $14.4B in Q3, BAC is guiding for NII of $14.0B in Q4 and similar levels in 2024’s 1H quarters, rising moderately in 2H. Consumer Banking rose 16%, with growth from NII +8%, but also with flat Y/Y results for card income and service charges. Global Wealth and Investment Management realized a 2% revenue decline, and total AUM increased 13% to $1.50T. As expected, Global Banking results of +8% Y/Y were mixed with total investment banking fees +2%, with M&A fees +4%, debt issuance -7%, and equity issuance +49%.