BofA's Subramanian raises S&P 500 year-end target to 7,400

Bank of America's head of US equity and quantitative strategy, Savita Subramanian, said in a report on Monday that the bank raised its year-end target for the S&P 500 to 7,400 points from 7,100 points, saying the long-term bullish thesis still holds. The bank also set a 12-month target of 7,800 points for the S&P 500. "We are entering a seasonally weak period, and we believe the market has long been overdue for a pullback," Subramanian wrote. The new year-end target is 3.4% below the S&P 500's close last Friday. She remains cautious about inflation risks and the possibility of Federal Reserve rate hikes, saying any catalyst that drives up financing costs could "accelerate the arrival of pain."