Bank of America Corp. BAC stock dipped 0.2% in premarket trade after falling more than 3% in the regular session on Tuesday. Odeon Capital downgraded the megabank to hold from buy, with a target price of $35.20 a share. Analyst Richard Bove said Bank of America’s business will slow down as the U.S. heads into a potential recession and consumers tap the brakes on spending. “The company is a strong consumer lender,” Bove said. “Yet it is likely that home mortgage growth will weaken. The industry data is not good at the moment.” Bove said the likelihood is “high” that Bank of America’s cost of funds will rise more quickly than interest rates overall. Bank of America stock is down about 0.4% in 2023 after Tuesday’s sell-off eliminated its gains for the year. The S&P 500 SPX is up 3.8% so far this year.
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