Bank of America BAC Stock on Dec 18 2025: New $63 Price Target, Cooling Inflation, and the 2026 Setup

December 18, 2025 — Bank of America Corporation’s stock (NYSE: BAC) is back in the spotlight as Wall Street digests a cooler inflation print, fresh analyst price-target moves, and a late-year resurgence in dealmaking that could reshape big-bank earnings momentum into 2026.

Key takeaways for Bank of America stock today

BAC traded around $54 on Thursday, after touching an intraday high near $55.15, with investors reacting to macro data and sector rotation.
Oppenheimer lifted its Bank of America price target to $63 from $55, reiterating an Outperform view—one of the most notable analyst actions tied to BAC on Dec. 18. ^[1]
Truist also raised its target to $58 from $56 and kept a Buy rating, citing management commentary and model updates that include higher fee assumptions and an improved long-range earnings view. ^[2]
A softer U.S. inflation update helped stocks rally and bond yields drop, a combination that can shift the market’s expectations for 2026 rate cuts—a key variable for large banks’ net interest income and capital flexibility. ^[3]
Bank of America’s dealmaking leaders are signaling confidence: in Reuters’ year-end M&A roundup, a top BofA banker said the market may be pivoting into a multi-year upswing in M&A after a near record-breaking 2025. ^[4]

Bank of America stock price today

Bank of America shares were under active watch Thursday as investors balanced “risk-on” relief from inflation with the market’s evolving rate path narrative.

As of the latest available quote on Dec. 18, BAC traded near $54.02, down about 1% on the session, after opening around $54.80 and reaching an intraday high of roughly $55.15.

That intraday high matters: it keeps Bank of America stock close to the levels that helped it notch a record high around $55.14 earlier this month, a milestone that underscored how strongly financials have participated in the late-2025 rally. ^[5]

Analyst moves on Dec 18: Oppenheimer and Truist raise price targets

Two separate price-target moves published Thursday were driving the day’s most “stock-specific” chatter around Bank of America.

Oppenheimer raises BAC target to $63

Oppenheimer boosted its price objective for Bank of America to $63 (from $55) while maintaining an Outperform rating, implying meaningful upside from the prior close. ^[6]

While the specific valuation framework isn’t fully laid out in the public headline note, the direction of travel is clear: major firms are increasingly comfortable underwriting a higher earnings and return profile for the bank as 2026 approaches—especially if the economy avoids a sharp downturn and capital markets remain supportive.

Truist nudges target to $58 and points to fee upside

Truist raised its target to $58 (from $56) and kept a Buy rating. Importantly, Truist framed the change as part of a broader model update following management commentary from recent conferences—raising its longer-term view of earnings power by incorporating higher fee expectations, partially offset by higher expenses and a higher tax rate assumption. ^[7]

That emphasis on fees is worth noting for Bank of America shareholders: after years in which investors obsessed over net interest income (NII) and rate sensitivity, incremental optimism around non-interest revenue (wealth, investment banking, trading, service charges, and payments-related fees) can help diversify the “reason to own” narrative.

Where consensus forecasts sit right now

Across Wall Street, consensus expectations continue to cluster in the high-$50s, though the exact average varies by source and coverage universe. One widely followed compilation showed an average target near $59, with a high estimate of $68 and a low estimate around $51 (and a “Buy” leaning consensus).

In other words: $58–$63 targets are not outliers, but they are on the constructive side of the current distribution—especially for analysts who believe BAC can sustain stronger returns on tangible common equity through the cycle.

The macro catalyst: inflation cools and the rate-cut debate returns

Bank of America stock doesn’t trade in a vacuum. Like most large U.S. banks, BAC is acutely sensitive to:

the path of short-term rates (affecting deposit costs and asset yields),
the shape of the yield curve (affecting lending spreads and securities portfolio dynamics),
and credit conditions (affecting charge-offs and provisions).

On Thursday, markets got a tailwind from inflation data. The Associated Press reported U.S. stocks jumped after an encouraging inflation update, with inflation running at 2.7% last month and Treasury yields falling (the 10-year yield slipped to about 4.11% from 4.16% late Wednesday). ^[8]

The immediate read-through for banks is nuanced:

Lower yields can pressure net interest income over time if asset yields reset down faster than deposit costs fall.
But lower yields can also relieve pressure on bond portfolios and capital, potentially improving buyback capacity and investor sentiment—particularly for banks with sizable securities books.
Softer inflation can support the case for further Fed cuts in 2026, potentially extending the economic cycle if credit holds up.

AP also flagged that recent U.S. economic data have been “noisy” following an earlier government shutdown, and investors may treat the next inflation prints as crucial confirmation. ^[9]

Politics and the Fed: why investors are paying attention

One reason the rate story stayed front-and-center on Dec. 18: Reuters reported President Donald Trump said the next Federal Reserve chair will favor significantly lower interest rates, describing a desire for rates “lower… by a lot.” The story noted the current rate range sits around 3.5% to 3.75%, and discussed potential candidates and the political debate around Fed independence. ^[10]

For Bank of America investors, this matters less as a headline and more as a volatility driver:

If markets begin pricing in a materially lower-rate regime, bank valuation multiples can re-rate (up or down) depending on whether investors believe lower rates spur loan growth or crimp margins.
Any perception of reduced Fed independence can also lift risk premia across rates and credit—impacting bank stocks broadly, including BAC.

Dealmaking is back: a tailwind for Bank of America’s fee engines

Beyond rates, the other major storyline strengthening big-bank forecasts into 2026 is capital markets activity—especially M&A.

In a Reuters deep dive published Thursday, global M&A value in 2025 surpassed $4.8 trillion, making it the second-biggest year on record behind 2021. Crucially for Bank of America, Reuters quoted Eamon Brabazon, co-head of global M&A at Bank of America, saying it feels like the market is pivoting into a strong multi-year M&A run. ^[11]

Why this matters for BAC stock:

M&A strength typically supports advisory fees and can lift broader investment banking pipelines.
Busy markets can spill over into financing activity, including debt issuance, bridge loans, and hedging—areas where universal banks like BofA can monetize relationships.
Robust deal flow can also help justify higher price targets if it improves the bank’s ability to generate fee revenue without taking incremental credit risk.

This is one reason investors increasingly discuss Bank of America not just as a “rates trade,” but as a balanced franchise spanning consumer banking, wealth, corporate lending, and markets.

Bank of America’s own operating outlook: trading strength, buybacks, and tech investment

Even though Thursday’s big headlines centered on price targets and macro, Bank of America’s near-term operating narrative has been shaped by a sequence of recent updates:

Reuters reported earlier in December that CEO Brian Moynihan expected the bank’s markets revenue to rise by a high single digit percentage to around 10% in the fourth quarter, while investment banking fees were expected to be broadly flat. Reuters also reported the bank planned to boost stock buybacks in Q4. ^[12]
Separately, Reuters also highlighted Bank of America’s push to invest in technology and AI, including a surge in tech leadership promotions and a multibillion-dollar tech budget—part of management’s longer-run efficiency and productivity pitch. ^[13]

For BAC shareholders, these threads combine into a familiar but important question: Can Bank of America convert scale into sustained return improvement—especially if the rate environment becomes less supportive than it was earlier in the hiking cycle?

What investors should watch next for BAC stock

With the calendar turning toward year-end and Q4 earnings season ahead, BAC investors are typically focused on a handful of key signposts:

Net interest income and margin direction

Does management reinforce (or revise) its NII trajectory as rates evolve?
How quickly do deposit costs normalize if the Fed continues cutting?

Credit quality and consumer health

Delinquencies, charge-offs, and provision trends—especially in credit cards and commercial real estate—often determine whether bank stocks can hold their valuation gains.

Fee growth durability

Truist’s Dec. 18 note explicitly referenced incorporating higher fees into its model. If fee growth broadens beyond trading into wealth and investment banking, it can support higher-quality earnings. ^[14]

Capital return and buybacks

If buybacks accelerate, the market may reward BAC—particularly if investors interpret capital return as a confidence signal in the bank’s earnings power. ^[15]

Risks that could derail the bullish BAC stock case

Even with rising price targets, Bank of America stock still faces several real risks that investors are actively pricing:

Rate-risk whiplash: Faster-than-expected cuts can pressure bank margins, while a sudden re-acceleration in inflation can create fresh volatility across bonds and credit. ^[16]
Capital markets disappointment: If the M&A rebound stalls or financing windows narrow, fee expectations may need to be reset—even after a strong 2025 backdrop. ^[17]
Regulatory and political headline risk: Shifts in oversight priorities can change the earnings “rules of the road,” influencing valuation multiples for the sector. ^[18]
Execution risk on efficiency: Bank of America is investing heavily in technology and productivity initiatives; the market will continue to demand measurable operating leverage and cost discipline. ^[19]

Bottom line

As of Dec. 18, 2025, Bank of America stock is being pulled by three powerful currents:

Analyst sentiment is improving, with new price targets—most notably Oppenheimer’s $63 and Truist’s $58—reflecting growing confidence in earnings durability and fee momentum. ^[20]
Macro conditions are shifting again, as cooler inflation revives the debate over how far and how fast rates fall in 2026—good for risk appetite, but complicated for bank margins. ^[21]
Capital markets activity looks healthier, and Bank of America’s own deal leaders see a path to a sustained M&A cycle that can support fee income beyond the rate story. ^[22]