BofA lifts price targets on five major banks, JPMorgan to $408

Bank of America Global Research raised price targets on five major US banks, lifting JPMorgan Chase to $408 and Goldman Sachs to $1,150.

"We see improving net interest margins and stronger investment banking fees supporting earnings across the sector," the BofA Global Research team said in a note dated July 7.

The firm raised Wells Fargo to $102 from $95, Morgan Stanley to $250 from $225, Goldman Sachs to $1,150 from $1,050, Citigroup to $176 from $170, and JPMorgan Chase to $408 from $362. JPMorgan's 12.7% increase was the largest on a percentage basis, followed by Morgan Stanley at 11.1%. Goldman Sachs received the biggest dollar boost at $100, reflecting expectations for a sustained rebound in advisory and underwriting revenue.

The coordinated upgrades come as the banking sector benefits from higher-for-longer interest rates and a recovery in capital markets activity. BofA's new targets imply upside of 7% to 12% from recent trading levels across the five banks, signaling confidence that net interest income will hold up even as the Federal Reserve eventually pivots to rate cuts. The revisions also reflect expectations for stronger investment banking fees as dealmaking momentum builds through the second half of 2026.

The upgrades align BofA with a growing consensus that large US banks are entering a more favorable earnings cycle after a period of margin compression and dealmaking drought. Investors will watch second-quarter results due later this month for confirmation that loan growth and fee income are tracking toward these revised estimates. JPMorgan, the largest US bank by assets, reports on July 14 and will set the tone for the sector.

This article is for informational purposes only and does not constitute investment advice.