Keefe, Bruyette & Woods Cuts BAC Price Target to $65
Keefe, Bruyette & Woods maintains its Outperform rating on Bank of America while lowering its price target to $65, a 24.82% upside from the current price.
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Keefe, Bruyette & Woods cut its price target on Bank of America Corporation ($BAC) to $65 from $70 on October 15, 2026, and rates the stock "Outperform".
Since the rating, $BAC is down 0.9% to date (from the $51.70 close on Oct 15, 2026).
BAC
Bank of America Corporation
Key Points
- On October 15, 2026, Keefe, Bruyette & Woods reiterated its Outperform rating on Bank of America with a new price target of $65, down from $70.
- Keefe, Bruyette & Woods's $65 price target implies 24.82% upside from Bank of America Corporation's ($BAC) current $52.08 share price.
- Recent trading shows Bank of America shares recently traded around $52.08, which is about 19.9% below the new target.
- The company's strong fundamentals include a revenue of about $113.9 billion and a dividend yield of 2.5%.
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Not investment advice. EarningsIQ is not a registered investment adviser, and this automated Bank of America Corporation alert may contain errors. Disclosures
Keefe, Bruyette & Woods has reiterated its Outperform rating on Bank of America Corporation (NYSE: BAC) on October 15, 2026, and set a new price target of $65. This is a decrease from the previous target of $70.
Other Institutional Activity in Bank of America
Several other major funds also have positions in Bank of America. BlackRock Inc. holds 545,683,702 shares valued at about $27.95 billion after increasing its stake by 6,417,271 shares. Vanguard Capital Management LLC added 12,127,174 shares, bringing its total to 421,828,996 shares worth approximately $21.6 billion. Meanwhile, Berkshire Hathaway, Inc. reduced its holdings by 30,253,860 shares, ending with 483,394,015 shares valued at about $24.8 billion.
Bank of America Corporation Stock Down 9.8%
As of October 16, 2026, Bank of America shares recently traded around $52.08. This price is about 19.9% below the target set by Keefe, Bruyette & Woods. The stock has seen considerable activity, and its current price suggests it may be undervalued compared to the analyst's target.
$BAC price target
Bank of America Corporation daily closes and this analyst's $65 target. Not advice.
Recent Earnings
For the trailing twelve months, Bank of America reported a revenue of approximately $113.9 billion and an earnings per share (EPS) of $4.33. The company has a net margin of 29.5% and a return on equity (ROE) of 11.2%. The next earnings report is expected to provide further insights into the company’s performance.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
6 analysts raised price targets.
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EPS & revenue
EPS beat estimates by 8.6%. Revenue met estimates.
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Profit surprise
Operating income missed by 10 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
6 target raises.
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Earnings quality
Gross margin up 40.5 points. Operating margin up 17.1 points. Positive free cash flow.
Earnings Call Summary
Bank of America delivered strong first quarter results with revenue up seven percent year over year to thirty point three billion dollars and earnings per share up twenty five percent to one dollar and eleven cents. The bank benefited from robust client activity, improved efficiency with operating leverage of two hundred ninety basis points, and stable asset quality with provision expense down to one point three billion. Management highlighted strength across all business segments, particularly in investment banking which was up twenty one percent, equities trading which had its best quarter ever, and wealth management which showed solid client flows and margin improvement.
Guidance Bank of America raised its full year net interest income growth guidance to six to eight percent from prior expectations. The bank expects continued balanced loan and deposit growth to support this outlook, with net interest income already up nine percent year over year in the first quarter. Management noted that net interest income exceeded expectations at fifteen point nine billion dollars.
Slightly positive report. The quarter was acceptable, but the forward setup is not strong.
Dividend
Bank of America pays an annual dividend of $1.28 per share, which gives it a dividend yield of about 2.5%. The company's dividend payout ratio stands at 25.9%, indicating a healthy balance between reinvesting profits and returning capital to shareholders.
Insider Buying and Selling at Bank of America Corporation
Recent insider transactions at Bank of America include several sales. On March 5, 2026, Officer Thomas M. Scrivener sold 50,000 shares at an average price of $49.82, totaling about $2.49 million. Officer Sheri B. Bronstein sold 60,000 shares at $49.91, amounting to approximately $2.99 million. Additionally, Officer Bernard Amponsah Mensah sold 94,000 shares at $46.94, worth about $4.41 million on March 12, 2026.
Analysts Set New Price Targets
On the same day as Keefe, Bruyette & Woods, several other firms maintained their ratings on Bank of America. Citigroup held its Buy rating but lowered its target from $66 to $60. Morgan Stanley also maintained an Overweight rating, reducing its target from $67 to $61. Truist Securities kept its Buy rating, adjusting its target from $62 to $58. RBC Capital reiterated its Outperform rating, lowering its target from $65 to $60, while Barclays adjusted its Overweight rating from $72 to $68.
About Bank of America
Bank of America Corporation, headquartered in Charlotte, NC, provides a wide range of financial products and services worldwide. The company operates through four segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets. This diverse structure is essential as it allows Bank of America to serve various customer segments, from individual consumers to large corporations.
Bottom Line
Investors should watch for Bank of America's next earnings date for more insights into its performance. With the recent adjustments in price targets from multiple analysts, the stock's trajectory will be closely observed in the coming weeks.
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Source: Keefe, Bruyette & Woods's rating change on $BAC (Oct 15, 2026). Written by software, not financial advice. How we make alerts