Bank of America(US:BAC) Ge Long Hui A P P·2026-01-15 06:30Core Viewpoint - Citigroup's report indicates that after Bank of America's fourth-quarter earnings announcement, its stock price fell by 3.8%, which may be an overreaction from the market due to negative interpretations of the 2026 operating leverage guidance and concerns over rising operating expenses [1] Group 1: Market Reaction - Investors are worried about the accelerated growth of operating expenses and the lack of a spending cap set by management, leading to selling pressure [1] - Citigroup believes that the market has not fully recognized Bank of America's normalized profitability following the recovery of net interest margin, suggesting that the current stock price is attractive [1] Group 2: Financial Projections - Citigroup expects Bank of America's operating leverage in 2026 to be slightly above the guidance of 200 basis points, with operating expenses projected to grow approximately 4% year-over-year [1] - The compound annual growth rate (CAGR) of net interest income is anticipated to reach between 5% and 7% [1] - Return on tangible common equity (ROTCE) is expected to reach 15% by 2026 and further increase to 16% by 2027, with the possibility of achieving these targets ahead of schedule [1] Group 3: Investment Rating - Citigroup reiterates a "Buy" rating for Bank of America, with a target price set at $62 [1]