On Tuesday, $Bank of America Corp(BAC-N)$ (NYSE:BAC) reported a first-quarter fiscal 2025 net income of $7.4 billion (versus $6.7 billion a year ago) and EPS of $0.90, beating the analyst consensus estimate of $0.81.
Revenue increased 6.0% year over year to $27.37 billion, beating the analyst consensus estimate of $26.99 billion, driven by noninterest income growth across all segments and higher net interest income.
CEO Brian Moynihan said trade tensions and tariff-related turbulence did not affect the company’s performance or American consumers in the first quarter.
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Truist Securities analyst John McDonald updated models to reflect 1Q results and updated management outlooks. The updates reflect modest downward revisions to EPS, citing conservative run rates on certain fee revenue lines and slightly higher provisioning.
Truist reduced the 2025 EPS estimate to $3.60 (-$0.05) and the 2026 estimate to $4.30 (-$0.05), citing conservative assumptions around investment banking revenues and loan loss provision.
The analyst has reduced the price target from $50 to $47 on the lower EPS and a lower target multiple to reflect increased macro uncertainty and risks. Truist maintains the Buy rating.
RBC Capital revised 2025 and 2026 EPS estimates to $3.70 and $4.25 from $3.73 and $4.35, respectively, reflecting a higher provision, higher expense, and lower noninterest income. “In view of recent market conditions, we revised our price target to $45 from $50,” RBC writes.
“BAC’s diversified business model continues to demonstrate its ability to navigate through uncertain times,” analyst Gerard Cassidy says.
“Furthermore, given the de-risking of its balance sheet over the last 15 years, we expect BAC to manage through the expected slowing of the U.S. economy and the impact it will have on credit trends without suffering any material adverse impacts to net income or capital,” Cassidy added.
Keefe, Bruyette & Woods says this was a solid quarter from BAC but also relatively in line.
“In our view, BAC will rerate higher as it continues to deliver improving NII and visible credit costs. We continue to like the stock currently trading at a 17% discount to peers on 2026E,” said analyst David Konrad.
The analyst reduced the 2025 estimate by $0.05 to $3.65 and 2026E by $0.15 to $4.40, driven by higher credit costs and modestly lower NII.
Keefe, Bruyette & Woods reduced the price target from $55 to $52, reiterating the Outperform rating.
“Further, BAC has flexibility for stronger repurchases as capital generation exceeds organic business growth needs,” analyst Konrad added.
Price Action: BAC stock is down 0.56% at $37.78 at the last check on Wednesday.
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