Morgan Stanley Remains Bullish on Bank of America (BAC) Following Strong Q4 Results

Bank of America Corporation (NYSE:BAC) is included successful our database of the 10 Goldman Sachs undervalued stocks to put in.

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On January 15, 2026, Morgan Stanley reduced its terms people connected Bank of America Corporation (NYSE:BAC) from $68.00 to $64.00, portion reiterating an ‘Overweight’ rating. The update came aft the institution posted coagulated Q4 results, beating statement EPS by astir 2%. However, the steadfast noted the stock terms driblet pursuing the results announcement, arsenic absorption was expected to tighten its 55%-59% medium-term disbursal ratio to 54%-58%. The concern steadfast besides touched upon the accounting change, which adds astir $1.00 cardinal per 4th to fees, complicates comparisons, and tempers short-term sentiment contempt the net beat.

The company’s January 14, 2026, net merchandise featured diluted EPS of $0.98 versus $0.96 expected, nett income of $7.60 billion, and gross of $28.50 billion, somewhat supra consensus. The 4th marked trading strength, with income and trading gross rising 10% to $4.50 billion, driven by benefits from volatile markets. At the aforesaid time, nett involvement income (NII) roseate 9.7% to $15.75 billion. Looking ahead, Bank of America Corporation (NYSE:BAC)’s absorption expects 7% NII maturation successful Q1 2026, portion reaffirming 5%-7% maturation for the afloat twelvemonth 2026, with indebtedness maturation and easing deposit costs driving optimism.

Bank of America Corporation (NYSE:BAC), a diversified U.S. fiscal institution, offers user banking, wealthiness management, concern banking, and planetary marketplace services to individuals, corporations, and organization clients.

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