On Tuesday, Bank of America, the country’s second-largest bank by assets, will report second-quarter earnings and analysts are expecting profit to be higher than a year ago.
Bank of America stock is up 9.1% for the year to date, making it one of the better performers among the big banks, and just behind the broader S&P 500
That’s a pleasant change of scenery for investors accustomed to bad news from the bank since the financial crisis.
In fact, analysts at Macquarie called Bank of America their “top pick in the US… given expectations for continued positive operating leverage on lower expenses coupled with expectations of more stable capital markets results.”
Yet Macquarie’s price target for the bank, $27, suggests a gain of only 8.7%, an increase that is lower than three of the other four U.S. banks it tracks.
Bank analyst Chris Whalen wrote in a recent research note that despite strong fundamentals and recent robust performance—up…