Baird upgrades Bank of America to Outperform with $62 price target
Baird raised Bank of America’s rating from Neutral to Outperform on October 15, 2026 and set a $62 price target. The upgrade follows the bank’s third‑quarter earnings, which showed GAAP EPS of $0.91 and adjusted EPS of $1.08 after a $1.2 billion regulatory charge, and an 8% year‑over‑year rise in net interest income. Baird cited the stock’s low valuation, a P/E of 11.84, and strong visibility metrics as reasons for the rating change.
Why it matters
Baird’s upgrade signals to investors that the bank may be undervalued, and the $62 target implies roughly a 21% upside from the current $51.39 price. GuruFocus also notes a 4.7% undervaluation versus its $53.93 fair‑value estimate.
Key facts
- 1Baird upgraded Bank of America to Outperform and set a price target of $62.00. investing.com
- 2Bank of America reported third‑quarter 2026 GAAP EPS of $0.91 and adjusted EPS of $1.08 after a $1.2 billion regulatory charge. investing.com
- 3Net interest income rose roughly 8% year‑over‑year to about $16.4 billion. investing.com
- 4The bank’s P/E ratio was 11.84 at a share price of $51.39. investing.com
- 5GuruFocus values the stock at $53.93, indicating a 4.7% undervaluation versus the current price. gurufocus.com
- 6The rating change was based on a weighted average of valuation, EPS revisions, and visibility metrics. marketscreener.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.