Bank of America’s strategist Savita Subramanian has raised her year-end S&P 500 target to 6,300, a 1.1% increase from Monday’s close, as the market appears to have lost momentum. According to Subramanian, there is little room left for growth, and negative economic surprises are breaking down. The strategist attributes this to corporate profits decelerating, particularly in tech companies.
Despite the market hitting record highs last week, recovery from the steep losses seen in April has been slow. Subramanian notes that policy uncertainty remains high, but corporate transparency has remained intact. Most companies have continued to guide on profits, and estimate dispersion is near post-COVID lows.
Subramanian’s target change comes after a brief period of increased optimism among sell-side strategists, who had initially lowered their forecasts following the April tariff announcement. However, as the market recovered, several strategists revised their estimates back up. The strategist’s new target now stands above the 6,243 average among those included in the CNBC Market Strategist Survey.
Source: https://www.cnbc.com/2025/07/08/bank-of-america-raises-year-end-sp-500-target-to-catch-up-to-meteoric-run-sees-little-gain-from-here.html