On Thursday, Wall Street firm Baird raised its stock rating for Bank of America ( BAC ) from neutral to outperforming the market, while maintaining a target price of $62. Based on the stock's closing price of $51 on Wednesday, this target price indicates there is still a 21% upside potential.

Despite the weak quarterly earnings reported by Bank of America before the market opened on Thursday, Baird still raised its rating for the bank.

Bank of America announced its financial results on Wednesday, stating that earnings per share fell short of market expectations, non-interest income was weak, and expenses increased. As a result, the company's stock price declined.

Beld believes that the recent sell-off in the market is an "overreaction," and the stock price correction presents an opportunity to buy. The investment bank's basis for this judgment is that there is a "marginal improvement" in the prospects for net interest income in 2027, and at the same time, the stock valuation is attractive.