Bank of America Corporation (BAC) is considered one of the most undervalued blue chip stocks to buy by hedge funds. Phillip Securities downgraded BAC to Accumulate from Buy, with a new price target of $50 from $45 on July 25.

The firm cited Bank of America Corporation’s valuation as the reason for the downgrade post recent share rally, anticipating investment fees and net interest income to support earnings. BAC operates in Consumer Banking, Global Wealth and Investment Management, Global Banking, and Global Markets segments.

While acknowledging BAC’s potential, certain AI stocks offer greater upside potential with less downside risk. For those seeking an undervalued AI stock benefiting from Trump-era tariffs and onshoring trend, check out the report on the best short-term AI stock.

Read more at Yahoo Finance: Bank of America (BAC) Gets Downgraded to Accumulate From Buy at Phillip Securities