Bank of America's Incremental Net Interest Income to Support Operating Leverage in 2027, Morgan Stanley Says

10:51 AM EDT, 10/15/2026 (MT Newswires) -- Bank of America's (BAC) incremental net interest income should increasingly reach the bottom line, supporting meaningful positive operating leverage next year, Morgan Stanley analysts said in a Thursday note. Analysts said the bank's Q3 earnings per share missed estimates, but noted that expectations were already lower heading into the quarter. Bank of America reported Q3 earnings per share of $0.91, lower than a FactSet analyst poll of $1.10. Morgan Stanley lowered the bank's 2026 earnings per share estimate by 1% to $4.59 to account for the Q3 miss and lower fee income, partially offset by lower provisions and costs. Morgan Stanley maintained an overweight rating on the stock, but lowered its price target to $61 from $67. Price: 51.46, Change: +0.07, Percent Change: +0.14