Morgan Stanley Lifts Bank of America Corporation (BAC) Price Target on Solid Growth Metrics

Bank of America Corporation (NYSE:BAC) is one of the best blue-chip stocks to buy now.  On November 6, analysts at Morgan Stanley raised the stock’s price target to $70 from $67, citing the company’s provision of a clear path to Return on Tangible Common Equity (ROTC) growth of between 16% and 18%. Likewise, the investment bank reiterated an Overweight rating on the stock.

According to Morgan Stanley, Bank of America Corporation (NYSE:BAC) is well positioned to outperform as net interest income headwinds become tailwinds. The firm also expects a new period of operating leverage.

RBC Capital Analyst Gerard Cassidy shares similar sentiments, reiterating an Outperform rating on the stock and a $56 price target on November 11. The RBC Capital analyst has echoed Bank of America’s growth strategy, which remains unchanged, with prospects for new profitability and efficiency targets. The research firm expects the bank to achieve its medium-term targets as it focuses on innovation and operational excellence.

Bank of America Corporation (NYSE:BAC) is a multinational financial institution that services individual consumers, small and middle-market businesses, and large corporations. Its services include retail banking, investing, wealth management, commercial banking, and global corporate and investment banking, which encompasses treasury, lending, and debt and equity underwriting.

While we acknowledge the potential of BAC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 9 Undervalued Asset Management Stocks to Buy and 13 Best AI Stocks to Buy Under $20.

Disclosure: None. This article is originally published at Insider Monkey.