04:09 PM EDT, 04/17/2024 (MT Newswires) -- Bank of America ( BAC ) remains well-positioned to thrive in the current rate environment, RBC Capital Markets said in a note, after Federal Reserve Chair Jerome Powell Tuesday indicated the central bank will likely stick with "higher for longer" strategy to rein in inflation.

The bank should also manage well over the next 12 to 18 months as the Fed eventually normalizes interest rates "without suffering any material adverse impacts to net income or capital." Its core low-cost deposit base should set it apart from its peers in the current rate environment.

Bank of America ( BAC ) also is unlikely to suffer from problems associated with commercial real estate lending that has bruised some of its peers in recent months after significantly de-risking its loan portfolio since the 2008 financial crisis, the analysts said.

RBC raised its forecasts for 2024 and 2025 per-share earnings to $3.37 and $3.70 from $3.30 and $3.65, respectively.

The firm maintained a $39 price target for Bank of America ( BAC ) with an outperform rating.