BOFA SEES S&P 500 AT 7,200 IN 12 MONTHS Bank of America raised its 12-month S&P 500 target to 7,200 (≈8% upside). Analysts cite stronger productivity, business investment, and easier monetary policy boosting rate-sensitive sectors. Key points: 🔸 Profit drivers: operating leverage, efficiency gains, cooling wage inflation, deregulation. 🔸 Headwinds: tariffs, but costs mostly absorbed by consumers/suppliers; inventories still being worked through. 🔸 Megacaps: growth may slow due to size and high capex; AI monetization risks loom. 🔸 Opportunities: other sectors may benefit as the “AI train” shifts to energy and new use cases. 🔸 CEO sentiment: unusually optimistic, with EPS guidance at its strongest since post-COVID reopening. 🔸 Valuations: expensive on most metrics, but BofA argues stocks can trade higher if EPS delivers.(*Walter Bloomberg)