BofA joins top bulls in outlook for S&P 500

BofA joins top bulls in outlook for S&P 500
Strategists boost earnings expectations tying BMO, Deutsche Bank.
MAR 12, 2024
By  Bloomberg

The S&P 500 will deliver stronger-than-expected earnings in 2024, powered by resilient economic growth and artificial intelligence breakthroughs, according to Bank of America Corp. strategists, who are now among Wall Street’s most bullish profit forecasters.

The team including Ohsung Kwon and Savita Subramanian raised their earnings-per-share estimate to $250 from $235, tying with BMO Capital Markets and Deutsche Bank AG for the most optimistic outlook among strategists tracked by Bloomberg. BofA’s EPS target for 2025 is $275.

The beefed-up earnings outlook for this year follows a strong earnings reporting season and an upgrade by BofA economists of their expectations for US gross domestic product readings, the strategists wrote in a note. “2023 was a transition year for Corporate America, and companies have now adjusted to the new higher rate and tepid demand environment,” the strategists said.

They also observed “a potential virtuous cycle forming from AI investments.” Semiconductor companies and networking are the most obvious winners from this, but utilities and commodities are also among sectors to benefit from increased power usage and data centers, they said. “Productivity gains from AI and domestic investments are also a major tailwind.”

Subramanian last week raised her S&P 500 target to 5,400 to reflect stronger earnings growth, implying a gain of 5.5% from the previous close.

Latest News

SEC Says Game Service Roblox Part of ‘Active Investigation’
SEC Says Game Service Roblox Part of ‘Active Investigation’

Short sellers previously said the company was under investigation, though Roblox denied allegations.

Musk’s DOGE descends on CFPB with intention to shut it down
Musk’s DOGE descends on CFPB with intention to shut it down

The Consumer Financial Protection Bureau is in the crosshairs of the Republican group that is widely attempting to dismantle government agencies.

Advisor fighting Finra banishment loses $17.7 million dispute with old firm
Advisor fighting Finra banishment loses $17.7 million dispute with old firm

National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.

Job numbers, inflation leaving room for Fed to hold rates
Job numbers, inflation leaving room for Fed to hold rates

Recent data support a measured pace by the Federal Reserve for the year ahead.

Private assets remain hot despite surging stock market
Private assets remain hot despite surging stock market

Financial advisors are still adding alternatives despite the surge in publicly traded stock prices

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.