New York, Jan 30, 2026, 03:49 EST
- TD Cowen, KBW, and Truist cut their price targets for Bank of America but maintained their positive ratings
- TD Cowen highlighted the 2026 guidance, focusing on the disparity between revenue growth and expenses
- A technical analysis report identified $50.58 as a crucial support level for BAC
TD Cowen lowered its price target on Bank of America to $64 from $66 but kept a buy rating, following the bank’s quarterly results. The broker highlighted management’s forecast that revenue will exceed expenses by about 200 basis points — roughly two percentage points — in fiscal 2026, according to a summary of brokerage notes. Analyst Steven Alexopoulos at TD Cowen said the bank’s revenue growth outlook remains solid. Meanwhile, Keefe, Bruyette & Woods cut its target to $63 from $64, and Truist Securities dropped theirs to $60 from $62, citing revised credit-loss assumptions and slower expected share buybacks. (Finviz)
When investors mention operating leverage, they’re typically referring to that gap between revenue and costs. It’s crucial since banks might report better-than-expected earnings in a quarter but still falter in the market if future expenses threaten to eat into upcoming revenue growth.
InteractiveCrypto’s technical note pointed out that BAC was trading close to $50.58, marking the 50% Fibonacci retracement level—a tool traders use to gauge potential support and resistance following a major price swing. Support was identified around $50, while resistance levels stood at $52, $54, and $56. The site also highlighted an RSI of 36.86 and a bearish MACD, both signaling downward momentum.
Bank of America shares closed near $53.08, gaining roughly 2.4% from the previous session. During the day, they fluctuated between $51.84 and $53.08, according to market data.
Bank of America topped fourth-quarter profit estimates, fueled by a jump in trading revenue and record interest income, Reuters reported earlier this month. CEO Brian Moynihan expressed optimism, calling the bank “bullish on the U.S. economy in 2026.” CFO Alastair Borthwick highlighted growth across consumer borrowing segments. Despite shares rising more than 25% in 2025, Bank of America still trailed JPMorgan Chase and Wells Fargo, according to Reuters. (Reuters)
This is the tricky stretch of earnings season for banks: the quarter wraps up, stocks shift, and investors debate the outlook for the next year. A few dollars off a price target usually comes down to math — which growth rate you use and how you estimate expenses.
Still, the situation can shift quickly. A move in rates, a weaker economy, or an unexpected rise in credit losses can shift banks’ earnings forecasts—and their stocks often move ahead of the actual results.
At this stage, the analyst adjustments seem more like a narrowing of expectations than a full pivot to bearish forecasts. BAC’s next challenge is persuading investors that it can sustain both revenue growth and cost control simultaneously.
