Truist Financial has raised the price target for Bank of America stock from $51 to $53. The firm kept its Buy rating on the shares ahead of the bank’s second-quarter 2025 earnings report.
John McDonald, an analyst at Truist, made the update on July 9. He said worries about a recession, which caused a sharp drop in Bank of America’s stock last quarter, mostly affected valuation multiples. These concerns have now mostly been factored into the stock price, along with a recent rebound.
McDonald expects Bank of America’s net interest income to grow in the coming quarter. However, he predicts the company’s net interest margins will remain stable compared to the first quarter of 2025.
In the first quarter, Bank of America reported net income of about $7.4 billion. This was an 11% increase compared to the same period last year. The bank’s net interest income also rose by 3% year-over-year.
Bank of America is a major bank holding and financial services company. It serves millions of customers and offers a wide range of financial products.
While Truist is positive on Bank of America’s stock, some investors may find other opportunities in the market. Certain artificial intelligence (AI) stocks could offer higher growth potential and carry less risk. These AI companies may benefit from recent trade policies and trends toward reshoring manufacturing.
Investors interested in undervalued AI stocks with strong short-term prospects may want to explore further research before making decisions.
