Street View: Analysts cheer BofA's NII and loan growth, but expenses remain a concern
Bank of America BAC.N beat estimates for second-quarter profit on Wednesday, driven by tumultuous markets that helped its traders bring in more revenue, while its interest income also rose
Median PT of 24 brokerages covering the bank is $53.50, according to data compiled by LSEG, an upside of 16.2% to stock's last close
'EXPENSES THE ONLY PRESSURE POINT'
TD Cowen ("buy," PT: $53) says with strong balance sheet growth, the improved loan outlook points to momentum at BAC
Morningstar (fair value: $46) says an improvement in NII has substantial implications for profitability of the bank, given the higher operating leverage
Says a pick-up in loan growth in recent quarters is another positive
Piper Sandler ("neutral," PT: $49) says improving NII is the main positive; credit and capital stories are strong as well, but expenses are a pressure point
J.P.Morgan ("overweight," PT: $48) says earnings came in better than feared, but the possibility of slower recovery in NII shook investors and has been compounded by little higher expense growth rate
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