Barclays Hikes BofA (BAC) PT To $71 on Expectations of Sustained Earnings Momentum in 2026

Bank of America Corporation (NYSE:BAC) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, Barclays raised the firm’s price target on Bank of America to $71 from $59 while maintaining an Overweight rating on the shares. As part of its 2026 sector forecast, Barclays updated its ratings and price targets for large-cap banks. The firm anticipates that the momentum behind 2025’s double-digit earnings growth and superior stock performance will persist throughout 2026.

On December 18, Truist also raised the firm’s price target on Bank of America Corporation (NYSE:BAC) to $58 from $56 and keeps a Buy rating on the shares. This sentiment was posted as Truist broadly updated the firm’s financial model following recent management conference appearances. The firm raised the FY27 EPS estimate to reflect stronger revenue growth driven by higher fees, though these gains are partially tempered by projected increases in expenses and tax rates.

However, Morgan Stanley cut its price target for Bank of America from $70 to $68 on December 12 while maintaining an Overweight rating. This adjustment accompanied a downward revision of earnings expectations, specifically cutting the Q4 EPS estimate by 4% and the 2027 forecast by 2.5%. These changes are driven by an anticipation of softer investment banking fees and increased operating expenses, though the impact is partially mitigated by a stronger outlook for equities trading revenue.

Bank of America Corporation (NYSE:BAC), through its subsidiaries, provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.

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.

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