Is Bank of America a buy or sell in April?

Written by: Stanko Iliev
April 11, 2021
  • Bank of America acquired Axia Technologies
  • Oppenheimer has raised its price target to $45 on Bank of America
  • Bank of America continues to move in the right direction

Bank of America (NYSE: BAC) shares are trading near record levels, and as long the price is above $35, there is no risk of the trend reversal. Bank of America expects a successful 2021, and according to the latest news, it acquired a health care payment and technology company Axia Technologies.

Fundamental analysis: Bank of America acquired Axia Technologies

Bank of America shares have advanced more than 30% since the beginning of 2021 year, and the current share price stands around $39. This bank has proven its stability during the Covid-19 pandemic, and in an effort to expand payment offerings for health care clients, Bank of America acquired Axia Technologies.

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“We are adding a talented team that brings great domain expertise and technology, and we’re excited to have them join Bank of America. We have a shared vision of providing clients with the best technology to meet their payment needs. Working together, we can leverage our joint expertise and capabilities to deliver a comprehensive range of payment and settlement solutions to our healthcare clients and their patients,” said Mark Monaco, head of enterprise payments at Bank of America.

The deal’s terms weren’t disclosed, but it is important to say that this acquisition will further accelerate the bank’s ability to serve this important segment. Bank of America continues to move in the right direction, profit is expected to grow in the upcoming quarters, and its dividend remains safe.

Oppenheimer has raised its price target to $45 on Bank of America as it sees this bank well-positioned for success in 2021 and, more importantly, beyond. Oppenheimer also reported that Bank of America is “broadly attractive vs. the market” and expects that banking shares could advance even more in the upcoming weeks.

Technical analysis: Bank of America shares are trading near record levels

Wall Street remains “bullish” on Bank of America as it sees it well-positioned for success in 2021 and the bank’s shares continue to trade in a buy zone. Bank of America shares could advance above the $45 resistance level this April; still, if the U.S. stock market enters a more significant correction phase, the share price could be at much lower levels.

Data source: tradingview.com

The critical support levels are $35 and $30; $45 and $50 represent the important resistance levels. If the price jumps above $45, it would be a signal to trade Bank of America shares, and the next target could be around $47, but if the price falls below the $35 support level, it would be a firm “sell” signal.

Summary

Bank of America shares are trading near record levels, and as long the price is above $35, there is no risk of the trend reversal. This bank has proven its stability during the Covid-19 pandemic, and Oppenheimer has raised its price target to $45 on Bank of America.