Wolfe Research bullish on Bank of America, cites strong growth

Bank of America (BAC) is attracting a bullish sentiment from Wolfe Research analysts. The firm reaffirms the major bank as a top pick, highlighting its strong growth prospects even in the face of a potential rate easing cycle by the Federal Reserve. Bank of America CEO Brian Moynihan has urged Fed officials to cut rates so as not to "dispirit" the American consumer if interest rates stay elevated for longer.

Additionally, the research firm describes the recent sell-off in Bank of America's stock as "unwarranted."

Catalysts co-hosts Seana Smith and Madison Mills break down the details.

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

This post was written by Angel Smith

Video Transcript

Let's get to another trending ticker here.

Shares of Bank of America after Wolf research, getting more bullish on the bank, the firm in the bank as a top pick and saying the recent sell off in the stock is quote unwarranted analyst, Steven she box saying Bank of America has more room to grow even in a more aggressive fed easing cycle.

And I think it's really interesting given the impact that we saw after the announcement that Warren Buffet had been selling off shares of Bank of America in particular, which you know, you were so great at putting into context.

I just that that was not massive compared to his overall holdings in Bank of America.

But that that did potentially lead to an unfair amount of pressure on Bank of America stock.

And I think that's an interesting way to kind of look at it.

Given that again, as you can see on your screen here, this is a stock that is up 13.5% year to date.

Yeah, they're saying that they like the current valuation right now.

A bank of and they lay out what is a bullish uh thesis here for the company going forward.

They say that Bank of America operates the leading retail banking franchise in the US also continuing to benefit here from that steadfast commitment to responsible growth.

They also went on to say that they expect Bank of America to actually benefit from the id, idiosyncratic net interest, income, tail wind.

So what does that mean?

They're talking about asset pricing?

They're talking about hedge renewal, they're talking about liability optimization.

So again, they think the set up here for Bank of America is very constructive.

And of course, after the recent turmoil that we have seen within the stock.