BUZZ-Street View: BofA's NII trajectory strong, expenses remain a focus

Bank of America's BAC.N profit beat expectations on Thursday as its traders benefited from a flurry of activity in the fourth quarter while the lender predicted it would earn more interest income in 2025

Median PT of 25 brokerages covering the stock is $51.50 - LSEG data

EXPENSES WILL BE THE AREA TO WATCH

Piper Sandler ("neutral," PT: $49) says BAC has a very strong net interest income (NII) trajectory, setting it apart from other major banks and makes the story more like that of one of the large regionals

Expenses will be a key focus and it is manageable given BAC's history of cost control, "but it still won't be a cakewalk", adds Piper Sandler

Barclays ("overweight," PT: $58) says "looking out, its 2025 NII guidance appears in line to modestly better than expected though costs are on the rise"

J.P.Morgan ("overweight," PT: $48) says NII has been growing and should continue to grow into 2025

Morningstar (fair value: $39.50) expects returns for BAC to improve in the coming years, but management should probably consider "tightening its belt" when it comes to spending plans

"The bank's fundamental performance and earnings growth trajectory should be better than peers in 2025"

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))