Bank of America stock price forecast: Mike Mayo sees a 56% upside

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Bank of America Corp (NYSE: BAC) is the best positioned to benefit from the rising rate environment, says Wells Fargo’s Mike Mayo. The U.S. Fed is expected to lift interest rate in each of its remaining six meetings this year.

Bank of America stock could climb to $66

The analyst reiterated BofA a “top pick” on strong net interest income growth. He tossed a $66 price target on the stock this morning that represents a 56% upside from here. Mayo wrote:

Cyclically, BAC previously front-loaded costs to increase primary checking accounts and grow deposits at levels that far outpaced the industry, and it’s now well positioned to better leverage these efforts. Higher rate backdrop helps BAC more than peers given $2T of mostly sticky, low-cost deposits that should help fund higher yielding securities and loans, helping NIM and NII.

Bank of America stock has come down more than 10% over the past six weeks.

Pete Najarian agrees with the bullish call

On CNBC’s “Halftime Report”, Pete Najarian, who owns the stock, agreed with the bullish call and said BAC was a much better pick than its larger rival, JPMorgan Chase.

At almost any time frame in the last year, you’d much rather be in Bank of America than JPMorgan. Look at BAC’s price to book, it’s been a great company that’s been too cheap. JPMorgan was overpriced. So, right now, I think Bank of America is the stock to own.

In January, Bank of America said its net income hit a record high in fiscal 2021.

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