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Bank of America Corp (NYSE: BAC) has gained about 50% since late October but a Wells Fargo analyst is convinced it is not out of juice just yet.

Bank of America stock has 16% upside

Mike Mayo reiterated his “overweight” rating on the investment bank this morning and said its shares could climb to $44 – up another 16% from here.

He’s bullish on the Bank of America stock primarily because he expects the multinational to report an upbeat first quarter in April.

An FDIC charge may weigh on its Q1 but solid capital markets activity, the analyst told clients in a research note today, will more than offset that headwind.

$BAC is attractive also because it pays a healthy dividend yield of more than 2.50% at writing.

BAC will maintain ROTCE at 13%

Mike Mayo acknowledged the ongoing challenges related to net interest income on Friday but said a turnaround in the back half of 2024 is projected.

He’s convinced that the Bank of America stock will maintain its ROTCE (return on tangible common equity) at about 13% on the back of solid credit and expense management.

The Wells Fargo analysts now forecasts BAC to earn $3.15 per share this year – a number he expects will improve to $3.55 in 2025 and $3.95 in the year after.

Mayo’s raised price target of $44 on the New York listed behemoth translates to a multiple of 1.7 times on its estimates TBV (tangible book value) at the end of Q4.

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