BofA Bearish View vs Citi’s AI-Driven Upside for 2026 S&P
Bank of America cautions that US stocks show too many red flags and maintains a bearish 2026 S&P 500 target of about 7,100 (around 6% below current levels), while Citi lifts its year-end target to 8,100 on higher earnings forecasts, with 2026 EPS around $350 and $400 in 2027 driven by AI tailwinds; Rob Haworth of U.S. Bank Asset Management also nudges his call to roughly 8,040 on AI-led growth and a resilient consumer. The divergence comes as AI-led tech rallies push valuations, but macro risks persist and some analysts warn earnings momentum could slow, potentially clouding the sustainability of near-term gains amid upcoming IPOs like SpaceX and OpenAI.
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