BofA Raises S&P 500 Forecast to 6,300 on Corporate Resilience

Bank of America's strategists boosted their S&P 500 year‑end target from 5,600 to 6,300, citing:

• Tariff‑defying earnings

• Adaptive corporate models post‑COVID

• Lower equity risk premium (ERP) supporting higher multiples

They also set a 12‑month goal of 6,600, convinced that dividends and durable cash flows will outshine bonds even as policy uncertainty and sovereign yields remain elevated.

Corporate Durability & ERP Recalibration

• Tariff Resilience: Large‑caps absorbed tariff costs with minimal margin erosion.
• Index Survivors: Post‑COVID turnover left only adaptable firms, enhancing earnings visibility.
• ERP Reset: With corporate strength proven, BofA reduced its ERP assumption—justifying a 22× forward P/E.

Check S&P 500's stocks EBITDA, P/E and other metrics easily through the Key Metrics TTM API.

Dividend Income vs. Bonds

• Yield Premium: Aging demographics and sticky inflation underpin demand for equity income.

• Dividends ≥ Price Return: BofA forecasts dividends will contribute as much—or more—than price gains.

Monitor Policy Triggers

• FOMC & Fed Speeches
• CPI/PCE Inflation Data
• Debt‑Ceiling & Budget Debates

Never miss a shift—get all key dates from the Economics Calendar API.

Action Plan

1. Trim Overheated Sectors

   • If forward P/E > 25×, reduce exposure.

2. Lock in Dividends

   • Hold high‑quality payers with ≥ 3% yield.

3. Phase into Dips

   • Use policy‑driven pullbacks to add core positions.

Conclusion
BofA's higher S&P 500 targets reflect proven corporate durability and a recalibrated ERP. Use the Economics Calendar API and Key Metrics TTM API to stay ahead of policy shifts and valuation trends.