Morgan Stanley Cuts Bank of America (BAC) Price Target to $61

Morgan Stanley has reaffirmed its Overweight rating on Bank of America with a new price target of $61, a 17.14% upside from the current price.

By EarningsIQ Research Desk · Published Oct 15, 2026, 9:18 PM EDT · Updated Oct 16, 2026, 8:15 PM EDT

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Morgan Stanley cut its price target on Bank of America Corporation ($BAC) to $61 from $67 on October 15, 2026, and rates the stock "Overweight".

Since the rating, $BAC is down 0.9% to date (from the $51.70 close on Oct 15, 2026).

BAC Bank of America Corporation

$51.23 -6.97% year to date

Daily close · Oct 16, 2026

Key Points

On October 15, 2026, Morgan Stanley reiterated its Overweight rating on Bank of America, lowering its price target from $67 to $61.
Morgan Stanley's $61 price target implies 17.14% upside from Bank of America Corporation's ($BAC) current $52.08 share price.
Bank of America shares recently traded at $52.08, which is below Morgan Stanley's new target by about 14.6%.
The company posted a revenue of $113.9 billion over the last twelve months, with a net margin of 29.5%.

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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

Morgan Stanley has reaffirmed its Overweight rating on Bank of America Corporation (NYSE: BAC) on October 15, 2026. The firm lowered its price target from $67 to $61. This change reflects Morgan Stanley's view on the bank's performance.

Other Institutional Activity in Bank of America

Blackrock Inc. grew its holdings by 6,417,271 shares, ending with 545,683,702 shares worth about $27.95 billion. Vanguard Capital Management LLC added 12,127,174 shares, bringing its total to 421,828,996 shares valued at approximately $21.6 billion. State Street Corporation increased its position by 4,866,124 shares, resulting in 299,782,707 shares worth about $15.4 billion. Meanwhile, Berkshire Hathaway, Inc. trimmed its stake by 30,253,860 shares, leaving it with 483,394,015 shares valued at around $24.8 billion.

Bank of America Corporation Stock Down 9.8%

Bank of America shares are currently trading at $52.08, which is below the new price target of $61 set by Morgan Stanley. This price level indicates that investors may find the stock appealing if it approaches the target. The shares are also trading near a 52-week range, which could impact future movements.

12-month forecast

$BAC price target

Bank of America Corporation daily closes and this analyst's $61 target. Not advice.

Recent Earnings

For the trailing twelve months, Bank of America reported a revenue of $113.9 billion and an earnings per share (EPS) of $4.33. The company has a return on equity (ROE) of 11.2% and a net margin of 29.5%. The next earnings report is expected on October 20, 2026.

Earnings drift grade

Outlook vs expectations on the last report — not price action.

B- 69/100

Reported Apr 15, 2026

Forward outlook
6 analysts raised price targets.
EPS & revenue
EPS beat estimates by 8.6%. Revenue met estimates.
Profit surprise
Operating income missed by 10 percent.
Pre-earnings setup
Expectations were about average.
Analyst signal
6 target raises.
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.

Insider Buying and Selling at Bank of America Corporation

Insider trading at Bank of America includes several notable sales. On March 5, 2026, Officer Thomas M. Scrivener sold 50,000 shares at an average price of $49.82, totaling $2,491,000. Officer Sheri B. Bronstein sold 60,000 shares on the same day for $2,994,600 at an average price of $49.91. Additionally, Officer Bernard Amponsah Mensah sold 94,000 shares on March 12, 2026, at an average price of $46.94, worth $4,412,642. On May 5, 2026, Officer Geoffrey S. Greener sold 126,756 shares at an average price of $53.00, totaling $6,718,702.

Analysts Set New Price Targets

On October 15, 2026, Citigroup maintained its Buy rating with a price target of $60, down from $66. Truist Securities also maintained a Buy rating, lowering its target from $62 to $58. RBC Capital kept its Outperform rating, adjusting its target from $65 to $60. Barclays maintained its Overweight rating, reducing its target 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 to consumers, businesses, and governments worldwide. Its segments include Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets. This recent analyst rating comes as the bank continues to navigate a competitive financial landscape.

Bottom Line

Investors should keep an eye on Bank of America's upcoming earnings report on October 20, 2026. With Morgan Stanley's updated price target and the market position of the stock, the next few weeks could be crucial for the bank's performance.