The article was written by Motek Moyen ResearchSeeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.
Summary:
Bank of America’s stock is still trading notably lower than its 52-week high of $35.72. Most investors believe banks have a headwind from COVID-19.
Millions lost their jobs and many small/medium businesses closed. It is obvious that banks will see increased loan defaults due to COVID-19. .
Bank of America is big enough. It can weather the temporary headwind from a global pandemic. More importantly, government central banks are always ready to prop up banks.
The cheap stock of Bank of America makes it very attractive. Tipranks gives this bank’s stock an average price target of $29.14.
I Know First has a very bullish one-year forecast score for BAC.
Bank of America Corporation (NYSE:BAC) is a household name in the United States and for good reason. By assets alone, it is the nation's second biggest bank. By Forbes' 2010 definition, it is the third largest company in the world. In 2008, it acquired Merrill Lynch Wealth Management, the world's largest brokerage. Merrill Lynch itself represented an add-on of over $2.2 trillion client assets and over 15,000 financial advisors. In finalizing this merger, BAC became a leading provider of global corporate and investment banking services. Where numbers are concerned, BAC seems sufficient: it services 50 million customers, possesses 5151 banking centers, holds 16259 ATMs, operates within all 50 US states, and maintains a presence in more than 40 other countries.
Despite these solid statistics, BAC has faced continued controversies and lawsuits since 2008. The financial consequences and ethical implications of these events - particularly when taken alongside the United States housing crisis - make BAC a problematic investment, as I Know First Research confirms with its 1-month, 3-month, and 1-year forecasts.
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