Bank of America stock (NYSE: BAC) has climbed strongly in the past 12 months, as sentiment continues to hold bullish. The institution is grappling with a confluence of factors ranging from evolving consumer behaviour and macroeconomic uncertainties to strategic shifts in its operational footprint and legal challenges. Markets appear to be carefully weighing these developments to assess the future trajectory of BAC stock.
Amidst the strategic branch expansion, Bank of America has also been actively closing branches in various states across the U.S., including California, Florida, and Illinois. These closures are driven by the declining profitability of certain locations and the increasing adoption of online banking, which allows customers to conduct most transactions remotely.
The proliferation of ATMs and digital platforms has significantly reduced the demand for traditional branches, prompting the bank to optimize its physical network. However, the bank is also expanding into new markets, opening nearly 40 new branches in 2024 and planning to open a total of 165 new centers in 63 markets by 2026.
YOUR CAPITAL IS AT RISK
Bank of America Share Price Targets
Analysts have set a 12-month price target for Bank of America with an average expectation of $49.89, ranging from a high of $57.00 to a low of $43.00.
The current consensus average target suggests a potential increase of 7.75% from the most recent trading price.
Our View: You would be wise to consider the views of the analyst community in conjunction with the fundamentals surrounding the company to properly determine a value for the stock that you feel is appropriate.
At the upper end of analysts estimates it would be easy to get carried away with the potential gains on show, but the flipside is that these targets can shift within the blink of an eye and that the view of analysts is very dynamic.
If you are considering swing trading, or day trading Bank of America shares that is a separate consideration, but for those planning for the long haul, fundamental analysis is king.
Bank of America – The Basics Driving The Business
As one of the world’s leading financial institutions, Bank of America provides a broad range of banking, investment, asset management, and other financial and risk management products and services to individuals, small- and middle-market businesses, and large corporations.
The company operates through four main business segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets. Consumer Banking serves individuals and small businesses with a range of financial services, including deposit accounts, credit and debit cards, and loans.
Global Wealth & Investment Management provides wealth management, investment, and brokerage services. Global Banking offers lending, treasury, and investment banking services to businesses. Global Markets provides sales and trading services, research, and risk management solutions to institutional clients.
In a strategic move that reflects the evolving landscape of banking, Bank of America announced plans to open over 150 new branches across the United States by the end of 2027. This expansion initiative underscores the bank’s commitment to maintaining a physical presence despite the growing dominance of digital banking channels.
While over 90% of client interactions now occur digitally, Bank of America recognizes the enduring value of physical branches for providing personalized financial services and fostering strong customer relationships. The bank plans to launch 40 new branches in 2025 and an additional 70 in 2026, strategically expanding its reach in key markets.
While expanding, the bank may consolidate some branches in mature markets, optimizing its physical footprint to align with changing customer preferences and market dynamics. Holly O’Neill, president of consumer and retail banking, emphasized the synergistic benefits of integrating physical branches with digital offerings, highlighting the importance of a holistic approach to customer service.
