BAC Stock Forecast & Price Target

Bank of America has demonstrated strong financial performance, with third-quarter total core revenues reaching $28.1 billion, reflecting a 9.9% year-over-year increase and surpassing expectations by $0.9 billion. The company experienced significant growth in investment banking revenues, which surged by 41.0% quarter-over-quarter, while expenses increased modestly by 5.2%, indicating positive operating leverage. Additionally, credit quality appears to be improving, as evidenced by a 10.4% reduction in non-performing assets, contributing to a favorable outlook for the institution's financial health.

The analysis highlights several fundamental risks contributing to a negative outlook on Bank of America's stock, primarily including potential decreases in bank equity values and concerns over asset quality, particularly amidst a challenging macroeconomic environment. The financial institution's earnings per share (EPS) for the third quarter of 2025 was reported at $1.06, exceeding prior estimates, yet the outlook remains cautious due to the possibility of increased loan losses if recessionary conditions return. Additionally, net interest margin (NIM) pressures and an increasingly aggressive regulatory landscape could further strain revenues and loan volumes, raising concerns for future performance.