CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target price by $2 to $35 on a forward P/E of 10.6x our 2024 EPS view, in line with peers. We lower our 2024 EPS by $0.10 to $3.30 and start 2025’s at $3.40. BAC posted Q4 2023 adj. EPS of $0.70, a $0.05 earnings beat. We see total revenue of $100.4B (prior $100.6B) in 2024 and $103.2B in 2025. In Q4 2023, total loans were flat as well as total deposits of $1.9T. Total net interest income (NII) was -5% Y/Y and -3% Q/Q, while noninterest income was -19% Y/Y and -26% Q/Q. Consumer Banking was -4%, with lower NII -3% and flat Y/Y results for card income and service charges. Global Wealth and Investment Management realized a 3% revenue decline and total AUM increased 15% to $1.62T. As expected, Global Banking results of -8% Y/Y were mixed, with total investment banking fees -2%: M&A fees -21%, debt issuance +44%, and equity issuance was flat Y/Y. We think credit quality will hold up in 2024 and BAC booked provision of credit losses of $1.1B and a net reserve release of $88M.