Wolfe Research downgraded Bank of America (BAC) from Outperform to Peerperform, citing valuation concerns and expected higher expense growth, which led to the stock trading down 2.19% intraday.
- The downgrade was partly based on Wolfe's expectation of 4%+ expense growth in 2026, which is not yet reflected in consensus estimates.
- The firm noted that BAC shares had gained 54% since the early 2024 upgrade, bringing its valuation to parity with peers like Wells Fargo.
- The stock is currently trading at $55.99.