Bank of America Surpasses Analysts’ Average Price Target: What’s Next?
In recent trading, shares of Bank of America Corp (Symbol: BAC) have exceeded the average analyst 12-month target price of $45.54, selling at $46.08 per share. When a stock hits a target set by analysts, they typically face a decision: either lower their valuation or increase their target price. Their choice often hinges on the company’s underlying business conditions that might be pushing the stock higher. If the outlook for Bank of America remains positive, it might be time for analysts to adjust their target prices accordingly.
Analyst Perspectives on Bank of America
There are 24 different analyst targets within the Zacks coverage universe that contribute to the average for Bank of America Corp, but this average is just a number. Some analysts have more conservative target prices, with one expecting a price of $35.00, while another analyst sees potential as high as $56.00. The standard deviation of this group of targets is $4.549, reflecting the variability in opinions among analysts.
Evaluating Opportunities: Time for Investors to Decipher Next Steps?
The purpose of examining the average BAC price target is to harness the “wisdom of crowds.” This approach combines inputs from various experts, rather than relying solely on one viewpoint. Now that BAC has surpassed the average target price of $45.54 per share, it prompts investors to reflect: is this merely an interim milestone on the way to a greater target, or does the current valuation suggest it’s wise to take profits? Below is a table listing the latest ratings from analysts who follow Bank of America Corp:
| Recent BAC Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 14 | 13 | 13 | 12 |
| Buy ratings: | 3 | 2 | 2 | 2 |
| Hold ratings: | 6 | 7 | 8 | 10 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.65 | 1.73 | 1.78 | 1.92 |
The average rating in the table ranges from 1 to 5, where 1 indicates a Strong Buy and 5 reflects a Strong Sell. This article incorporates data from Zacks Investment Research via Quandl.com. For further insights, access the latest Zacks research report on BAC — FREE.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
