Posted 3/12/2024, 10:35:00 AM
Bank of America Upgrades 2024 S&P 500 EPS View on Stronger Growth Outlook
- Bank of America raised its 2024 S&P 500 EPS estimate to $250, up from $235 previously, implying 12% YoY growth
- The upgrade is due to higher 2024 GDP growth forecast of 2.7% by BofA economists vs 1.4% before
- BofA says 2023 was a transition year; companies have adjusted to higher rates and weak demand
- BofA introduced 2025 EPS estimate of $275
- BofA says "hyperscalers" like Microsoft, Amazon, Alphabet, Meta will allocate $180B towards capex in 2024, a 27% YoY increase, benefiting semis, networking, utilities due to AI investments