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Bank of America stock rises on Wolfe Research upgrade

Shares of Bank of America (BAC) have received an upgrade from analysts at Wolfe Research. The firm has lifted the stock's rating to Outperform from Peer Perform, citing increased clarity surrounding the bank's net interest income prospects and an attractive valuation compared to competitors.

Yahoo Finance's Julie Hyman and Madison Mills break down the details.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Angel Smith

Video transcript

JULIE HYMAN: All right. Let us check in on some of today's other top analyst calls that we are watching. Let's talk about Wolfe Research raising its recommendation on Bank of America to Outperform from Peer Perform, citing increased clarity on net interest income and discounted valuation versus peers. And this is part of Wolfe's wrap up note post earnings, and that's where this increase is coming from here. So looking at the numbers, obviously net interest income was really the focus for bank, big bank investors. And Wolfe is saying here that what we saw was a net interest income inflection for the company here, and that's why they like it.

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MADISON MILLS: Yeah. A lot of analysts saying that maybe this was the bottom when it comes to the net interest income question that was such a key data point for the big banks for this earnings cycle. It is interesting, though, I just took a look at the analyst recommendations here. And it's interesting that we have 50% holds, and only 46% buys on Bank of America, when they do have such a strong balance sheet.

But later on in this note, they do mention that there's some questions about loans moving forward, and the ability for Bank of America to tease that out a little bit more. And I know that number came in a little bit lower than we anticipated from this past earnings print. So I wonder to what extent Bank of America is going to be able to extend that out moving forward.