In 2024, Bank Of America Sees Bullish Stock Results

(CTN News) – An optimistic forecast regarding Bank Of America stocks this year has been issued by another Wall Street strategy team.

Earlier this week, Bank of America’s US equity and quantitative strategy team, led by Savita Subramanian, raised its year-end target for the S&P 500 (GSPC) to 5,400 from 5,000.

In accordance with Yahoo Finance, this projection and a recent call from UBS represent the most bullish predictions for the benchmark average this year.

Subramanian wrote, “Bull markets end with euphoria – we haven’t reached that point yet.”. “Sentiment has improved, but areas of euphoria have been limited (AI, GLP-1).”

According to Yahoo Finance, BofA is the fifth strategist to increase their price target in the last month. In the beginning of the year, stocks have soared higher, leading to more optimistic outlooks.

Both the S&P 500 and Nasdaq Composite (IXIC) closed out February with their best performances since 2015 as a result of a second consecutive quarter of earnings growth and increased confidence in the economy’s future.

The fourth quarter earnings of the company increased by 4% in comparison to the previous year, and analysts have not cut their forecasts for the current quarter at their normal rate.

A recent report by Bank of America’s economics research team also boosted its outlook for this year’s growth. Wall Street has reported recent increases in S&P 500 year-end targets based on a combination of increased earnings expectations and a more optimistic outlook for the U.S. economy.

The strategists at Bank of America do not think that stocks will move upward in a straight line, so they do not expect them to do so. According to Subramanian’s team, there is a possibility that the market could pull back from current levels in the near future.

It has been reported that 5% pullbacks in the S&P 500 happen three times a year on average, and that one of those pullbacks is often followed by a 10% correction, according to a study conducted by Bank of America.

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