Morgan Stanley maintained its Overweight rating on Bank of America (BAC) but lowered the price target to $64 from $68, despite the bank reporting strong Q4 2025 financial results.
- The target cut occurred even though BAC beat consensus EPS estimates.
- The bank reported strong Q4 net income totaling $7.6 billion.
- Performance was supported by robust equities trading and the Merrill Wealth division, which achieved 10% year-over-year revenue growth.