Bank Remains Bullish on BAC Despite Target Cut

Canadian bank RBC cut its price target on Bank of America (BAC) stock to $45 from $50 but maintains a positive view of the shares.

BAC reported its first-quarter financial results yesterday.

Why RBC Cut Its Price Target on BAC But Remains Bullish

RBC lowered its price target on BAC to $45 from $50 due to macroeconomic issues.

Bank of America has delivered strong results in the face of macroeconomic challenges, RBC reported. Moreover, its efforts to increase its deposits and loans should boost its top profits over the long term, the Canadian bank believes.

RBC Capital is impressed by BAC's low-cost deposit base.

Finally, RBC, noting that BAC  has taken meaningful steps to reduce its risk following the Great Financial Crisis, believes that these measures will help the bank maintain its current profit levels in the face of a potential recession.

More About BAC Stock

Analysts on average expect the bank's earnings per share to climb to $3.64 this year and $4.26 in 2026 from $3.21 in 2024.

In the last month, the shares have fallen 10%, while they have dropped 20% in the last three months.

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