Bank of America stock falls after worst drop since April 2025 as Goldman Sachs sticks to Buy rating
Published on 09/18/2026 at 14:28 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Bank of America Corporation stock (ISIN US0605051046) traded around USD 59.47 after a sharp 5.1 percent decline on September 14, 2026, marking its worst single-session drop since April 2025 and putting the shares under renewed scrutiny among bank investors.
Analyst calls frame the latest move
As Barchart reported on September 17, 2026, Bank of America stock fell 5.1 percent to USD 59.47 on September 14, 2026 while the S&P 500 banking index dropped 2.7 percent, highlighting that the move was noticeably steeper than the broader sector reaction.
According to The Globe and Mail on September 17, 2026, Goldman Sachs analyst Richard Ramsden reiterated a Buy rating on Bank of America with a USD 76.00 price target, after the shares closed at USD 59.52 the prior trading day, implying about 27.6 percent upside from that close.
Morgan Stanley and Wells Fargo see reaction as overdone
Per the same overview from Barchart, Morgan Stanley recently maintained a USD 67.00 price target on Bank of America shares and described the latest market reaction as overdone relative to changes in the bank's earnings estimates, suggesting the stock move is stronger than the underlying forecast revisions.
The same article notes that Wells Fargo kept its USD 69.00 target on Bank of America, arguing that weaker near-term capital markets activity could be offset by higher interest rates and a steeper yield curve, providing a macro backdrop that could support net interest income even as fee businesses remain mixed.
In addition, Barchart highlights that Goldman Sachs lowered its Bank of America price target to USD 76.00 from USD 79.00 on September 16, 2026, a reduction of USD 3.00 or about 3.8 percent, while still keeping a Buy rating, underlining that the bank remains positively rated even as expectations are tuned down slightly.
Consensus still points to upside for Bank of America stock
According to The Globe and Mail, analysts tracked in that overview currently assign Bank of America a Strong Buy consensus rating, with an average price target of USD 68.64, representing 15.32 percent upside from recent trading levels and signaling that the street broadly expects gains even after the latest decline.
A separate institutional ownership snapshot from MarketBeat published on September 18, 2026 notes that 21 research analysts rate Bank of America stock Buy and six rate it Hold, for an aggregate Moderate Buy recommendation and a consensus price target of USD 64.08, implying additional upside of roughly 7.7 percent from the USD 59.52 closing level cited there.
The same MarketBeat data set shows that Nykredit A S recently invested about USD 84.45 million in Bank of America Corporation shares, reinforcing the picture of ongoing institutional interest even as the shares experience short-term volatility around macro and rate expectations.
Earnings expectations and macro risks
Consensus earnings estimates compiled by Yahoo Finance as of mid-September 2026 show that analysts on average expect Bank of America to deliver earnings per share of USD 1.18 in the current quarter ending September 2026 and USD 4.66 for full-year 2026, with the current-year estimate having eased marginally from USD 4.67 seven days earlier.
The same earnings overview indicates that the high estimate for Bank of America's 2026 earnings stands at USD 5.01 per share, while the low estimate is USD 4.54 per share, illustrating a spread of USD 0.47 across individual forecasts and underscoring that while expectations have softened slightly, they still center on mid-single-digit dollar EPS this year.
On the valuation side, strategists at Bank of America have flagged broader market risks: in a client note summarized by Business Insider on September 17, 2026, the bank pointed out that the S&P 500's normalized price-to-earnings ratio sits near 32, a level they associate with the risk of negative average annual returns over the coming decade, a macro backdrop that could cap sector multiples, including for large banks.
Stock price and market data checkpoint
Per recent NYSE data cited in analyst commentary, Bank of America shares closed at USD 59.52 on September 16, 2026, following the earlier September 14, 2026 drop to USD 59.47, leaving the stock modestly above that intraday low while still below the average analyst target in the mid-60s USD range.
With price targets spanning roughly from USD 64.08 to USD 76.00 among key houses and consensus full-year 2026 EPS around USD 4.66, the implied forward price-to-earnings multiples cluster in the mid-teens based on recent trading prices, a level that investors will weigh against macro warnings on broader market valuations and the potential for slower profit growth.
Bank of America stock - key data
- Company: Bank of America Corporation
- ISIN: US0605051046
- Ticker: BAC
- Trading venue: NYSE
- Price (as of September 16, 2026): 59.52 USD
- Sector / Industry: Financials / Diversified Banks
- Index membership: S&P 500
