BAML Raises S&P 500 Target To 1,750

Bank of America Merrill Lynch (BAML) has increased its S&P 500 (INDEXSP:.INX) 2013 end of year target from 1600 to 1750 in light of expected earnings growth for the rest of this year, they announced in a recent report. Falling ERP (equity risk premium) and some changes in the way the company predicts growth also factor into the change. BAML revises it prediction model While the upwards revision is mostly based on the bank’s Fair Value model, showing genuine optimism about the ongoing recovery, it also reflects changes in the predictive model itself. The BAML report states, “if the last several…