Piper Sandler Analyst Cuts Bank of America 2026 and 2027 Estimates

Bank of America Corporation (NYSE: BAC) shares extended their decline in early trading Thursday, following a sharp drop Wednesday after the company reported weaker-than-expected third-quarter results. Piper Sandler analyst Scott Siefers said the outlook “comes across as constructive” despite the earnings miss. Siefers maintained a Hold rating on Bank of America and lowered his price target to $56 from $60. He said the company posted third-quarter earnings of 91 cents per share, below the $1.10 consensus estimate.

His estimate for core earnings, excluding one-time items, was $1.08 per share. The analyst wrote that stronger-than-expected expenses and credit costs did not offset lighter-than-modeled fees, particularly in market making. He described the outlook as having several “cross-currents,” while saying much of it appeared constructive. Bank of America’s net interest margin (NIM) continued to improve and moved closer to management’s 2.30% medium-term target, Siefers noted.

The supplied section ends as it begins to discuss management’s net interest income (NII). Siefers wrote that growth is expected to “should sustain 8%+ into 2027E,” resulting in “solid rate-based NII progression.” He said the NII outlook appeared strong and durable, while the fee outlook required more confidence. He added that Bank of America expects to return to positive operating leverage in the fourth quarter and generate 200-300 basis points or more in 2027. The analyst cut his earnings estimates for 2026 and 2027.

The 2026 estimate fell from $4.52 per share to $4.49 per share, while the 2027 estimate declined from $5.10 per share to $5.05 per share. Bank of America shares were down 0.29% at $51.26 at the time of publication on Thursday. Read Also: JPMorgan, Bank of America, Wells Fargo Among 9 Banks Accused of Political, Religious Debanking by OCC