Ticker (Exchange) – BAC (NYSE)
ISIN - US0605051046
Current price – $39.9
Target price – $45.8
Growth potential – 14.8%🔥
Dividend yield – 2.5%💵
Investment time – 1 year
Bank of America is the second-largest bank in the United States and the world, following JP Morgan Chase. The bank offers a wide range of financial services across four main segments: Consumer Banking, Wealth & Investment Management, Banking, and Markets. BofA demonstrates strong financial performance even in less favorable conditions and anticipates improvements in the future. The fair value of the bank's stock is $45.8, with an upside potential of 14.8%. The dividend yield is 2.5%.
Investment thesis
🔼 Optimistic Business Outlook. Bank of America delivered a solid financial report for Q2 2024. Revenue increased by 0.8% y/y, reaching $25.5 bln. Net income declined by 6.9% y/y to $6.9 bln ($0.83 per share) due to a decrease in net interest income amidst high rates. However, both figures exceeded market expectations. Net interest income, which represents the difference between income from loans and costs of deposits and is the cornerstone of the banking business, fell by 3% y/y to $13.86 bln. Nonetheless, the bank expects it to grow to $14.5 bln by the end of the year, driven by a potential reduction in the Federal Reserve's key rate.
🔼 Dividends. The bank consistently returns profits to investors through dividends. The expected dividend yield is 2.5%, which is already a decent level. As the Federal Reserve lowers its key rate, this yield will become increasingly significant for investors.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
ISIN - US0605051046
Current price – $39.9
Target price – $45.8
Growth potential – 14.8%🔥
Dividend yield – 2.5%💵
Investment time – 1 year
Bank of America is the second-largest bank in the United States and the world, following JP Morgan Chase. The bank offers a wide range of financial services across four main segments: Consumer Banking, Wealth & Investment Management, Banking, and Markets. BofA demonstrates strong financial performance even in less favorable conditions and anticipates improvements in the future. The fair value of the bank's stock is $45.8, with an upside potential of 14.8%. The dividend yield is 2.5%.
Investment thesis
🔼 Optimistic Business Outlook. Bank of America delivered a solid financial report for Q2 2024. Revenue increased by 0.8% y/y, reaching $25.5 bln. Net income declined by 6.9% y/y to $6.9 bln ($0.83 per share) due to a decrease in net interest income amidst high rates. However, both figures exceeded market expectations. Net interest income, which represents the difference between income from loans and costs of deposits and is the cornerstone of the banking business, fell by 3% y/y to $13.86 bln. Nonetheless, the bank expects it to grow to $14.5 bln by the end of the year, driven by a potential reduction in the Federal Reserve's key rate.
🔼 Dividends. The bank consistently returns profits to investors through dividends. The expected dividend yield is 2.5%, which is already a decent level. As the Federal Reserve lowers its key rate, this yield will become increasingly significant for investors.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
