S&P 500 Rally Isn't Over Yet, Say Goldman and BofA in Bold New Targets

July 8 - Goldman Sachs and Bank of America lifted their S&P 500 targets as large-cap firms weather policy headwinds.

Goldman Sachs now sees the index reaching 6,600 by year?end and 6,900 within 12 months, up more than 6% and 11%, respectively, from its prior outlook.

BofA followed, boosting its year?end goal to 6,300 and its 12?month view to 6,600, citing resilience in Corporate America despite persistent uncertainty and elevated sovereign yields.

Most companies have continued to guide on profits, and estimate dispersion is near post?COVID lows, said BofA's Savita Subramanian, noting dividends may now contribute more to returns than under zero interest rate policy.

Goldman's David Kostin maintained 7% EPS growth forecasts for both 2025 and 2026 but warned that tariffs pose risks to corporate profits. He added that a broader market rally is more likely than a catch down after a narrow?breadth rally.

Both firms expect limited upside near term, with BofA seeing sideways trading through Q3 amid mixed earnings signals.