Latest news with #BofA
Yahoo
21 hours ago
- Business
- Yahoo
BofA sees strong Q1 growth keeping Bank of Canada on hold in June
-- Bank of America (NYSE:BAC) Securities expects the Bank of Canada to hold its policy rate at 2.75% in June, pointing to stronger-than-expected growth in the first quarter of 2025. In a research note published Friday, the firm said resilient GDP figures and sticky core inflation suggest the central bank will refrain from easing monetary policy for now. Canadian GDP rose 2.2% quarter-over-quarter annualized in Q1, topping both BofA's and the market's 1.7% forecasts. The outperformance was driven by a sharp 6.7% increase in exports, which analysts attributed to frontloading ahead of potential U.S. tariffs. 'Today's activity print not only showed that consumption weathered the initial shock from the trade war, but also that monthly GDP is holding up,' said Carlos Capistran, BofA's LatAm and Canada economist. He added, 'We expect the Bank of Canada (BoC) to leave its policy rate unchanged at 2.75% on June 4.' BofA revised its 2025 GDP forecast for Canada to 1.4%, up from 1.0%, citing the economy's underlying strength and revisions to 2024's baseline data. The firm maintained its 2026 growth forecast at 1.5%, while noting that risks remain balanced amid ongoing trade tensions and potential fiscal and monetary stimulus. Despite growth in net exports, final domestic demand declined by 0.1%, weighed down by a 3.0% drop in business investment. Consumption edged up just 0.8%, a performance Capistran suggested could reflect a 'Buy Canadian' sentiment emerging amid cross-border trade friction. March GDP rose 0.1% month-over-month, in line with expectations, with broad-based gains across both goods and services sectors. Initial estimates for April show similar momentum, reinforcing BofA's view that the economy remains more resilient than previously anticipated. 'Looking ahead, we believe that the outlook will become clearer, and that core inflation will be tamed by economic weakness,' Capistran said. He expects the BoC to begin cutting rates later this year, forecasting a year-end policy rate of 2.00%. While growth appears to have firmed for now, the strength of consumer behavior and export dynamics will be closely monitored as the trade conflict with the U.S. continues to evolve. BofA's outlook suggests the BoC remains in wait-and-see mode until further clarity emerges. Related articles BofA sees strong Q1 growth keeping Bank of Canada on hold in June Do foreign investors hold too much of US assets? Canada March GDP rises 0.1%; Q1 growth steady at 0.5%
Bloomberg
a day ago
- Business
- Bloomberg
Stock Movers: Boeing, Moderna
On this episode of Stock Movers: - Boeing (BA) shares gain after BofA Global Research upgraded the planemaker to buy from neutral, with analyst Ronald Epstein writing that company's 'aircraft emerged as the favored trade tool for the Trump administration in recent trade deals.' - Moderna (MRNA) shares rise after the drugmaker won FDA approval for its second-generation Covid vaccine for all adults over 65 and anyone over 12 who has at least one risk factor for severe disease.
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Business Standard
a day ago
- Business
- Business Standard
Foreign brokerages stay cautious on India stock market; check strategy here
Foreign brokerages remain cautious on the road ahead for the Indian equity markets. Though analysts at Nomura have revised their March 2026 Nifty target to 26,140 levels from the earlier 24,970, but the upside from the current levels is a modest 6 per cent. BofA Securities, on the other hand, has not made any change to its year-end Nifty target. The Nifty, Nomura said, is currently trading at 20.5x one-year forward earnings, which is near the high-end of its trading range over the past three years. 'However, the favorable spread between earnings yield and bond yield at -1.4 per cent – which is at the high end of the range that prevailed over the past four years – is comforting. Based on 21x price to earnings (P/E) on FY27F earnings, we arrive at our March 2026 Nifty target of 26,140,' wrote Saion Mukherjee, managing director and head of equity research for India at Nomura in a recent coauthored note with Amlan Jyoti Das. ALSO READ: Stock Market LIVE: Markets trim losses; Sensex down 250 pts, Nifty near 24,700; PSBs, realty up 2% Those at BofA Securities, too, remain cautious on the markets in the near term led by weakening global macro. The ongoing monetary stimulus, BofA said, would help India revive its gross domestic product (GDP) / capex / consumption growth, but see a shallow revival, and hence remain conservative on GDP growth at 6.3 per cent versus Reserve Bank of India (RBI) projection of 6.5 per cent in fiscal 2025-26 (FY26). 'Given the recent rally, we see no upside to our Nifty year-end target of 25,000. Near-term, incrementally, we see seven emerging risks that make us cautious on Nifty / large-caps, and we continue to stay bearish on the broader markets,' wrote Amish Shah, India equity strategist at BofA Securities in a recent coauthored note. The markets, BofA Securities said, are now fully pricing in an imminent India-US trade deal, leading to India being a key beneficiary of shifting global supply chains. However, any potential global slowdown amidst ongoing trade war is not priced in yet. Flows to the equity markets - both domestic and foreign, too, remain at risk, BofA said. While DII flows could remain volatile in the months ahead and may even moderate. Domestic inflows, data suggests, peaked at $8.6 billion in October 2024 and have seen moderation since then to $6.1 billion in April 2025. 'May flows stand at $3.5 billion versus $13.5 billion outflows for January - March 2025. However, with recent market rally, relative return potential for Nifty has become unattractive for FIIs versus US treasuries (4.3 per cent) and equity risk premium. Thus, we see risk to FII flows going forward,' Shah wrote. As a strategy, Nomura prefers domestic-focused sectors to exporters given the global uncertainties, and prefer consumption to investment themes. The investment cycle, Nomura said, is likely to be delayed because of global uncertainties. Supply-chain relocation themes such as autos, pharmaceuticals/chemicals and electronic segments are their preferred sectors. Financials, consumer staples, autos, discretionary, oil and gas, power, telecom, internet, real estate and select domestic healthcare plays are some of their other top bets. 'Within industrials, we are constructive on companies that are play on investment in the power sector. We are cautious on export sectors and capex themes. These include IT services, industrials, cement, and metals. On pharma, ensuing US tariffs present a near-term headwind, but we expect the impact to be passed on and hence a correction may be a buying opportunity,' Mukherjee wrote.
Economic Times
a day ago
- Business
- Economic Times
India crowned top destination for stock compounders, says BofA; lists 9 structural themes
Bank of America Securities sees India as best for stock growth due to nine factors. India's economy is growing fast. According to the International Monetary Fund, India is projected to be the fastest-growing major economy in 2025 and 2026. Over the past 30 years, Indian markets have delivered USD-based returns at a 7% CAGR, second only to the U.S. Notably, this performance has been driven primarily by earnings growth rather than valuation increases, distinguishing India on the global stage. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Nine Structural Themes Fueling India's Growth Outlook BofA outlined nine long-term themes that make it constructive on India's equity outlook: Infrastructure Boom: India is on track to add more infrastructure between FY15 and FY30 than it did in the previous 65 years, with a projected 3.25x economic multiplier according to an RBI study. Productivity Gains: Improvements in logistics, energy efficiency, and capital-output ratios suggest a productivity renaissance akin to the 2003–07 boom years. Digitization: With more than 900 million internet users and ultra-low data costs, India has witnessed a 140x surge in digital transactions in eight years, fueling a fast-growing digital economy and the fourth-largest venture capital ecosystem globally. Financialization: Over 90% of Indians now have bank accounts, up from 35% in 2011, but formal credit penetration remains low at 11–13%, providing significant room for expansion in financial services. Household Savings Strength: Households contribute over 60% to the national savings pool. Improving balance sheets and easing inflation are expected to further support domestic capital formation. Discretionary Consumption Shift: As per capita income nears $5,000 by 2030, the share of discretionary consumption is expected to rise to 43%, up from the current 36%, driven by premiumization and a growing middle class. Formalization Push: Reforms like GST, UPI and e-invoicing are driving growth in the formal sector, broadening the tax base and creating scale benefits for organized players. Improving External Position: PLI schemes, labor reforms, and infrastructure investment could transform India from a current account deficit country into one running surpluses. Decarbonization Momentum: India has already invested $216 billion in clean energy over the last decade, and is expected to deploy another $270 billion by FY30. Market Outlook: Long-Term Conviction, Short-Term Caution In a powerful long-term endorsement of India's equity markets, Bank of America ( BofA ) Securities has ranked the country as the world's top hunting ground for stock compounders , driven by a confluence of nine structural growth engines. While bullish on India's decade-long trajectory, the brokerage struck a cautious tone on near-term market prospects, citing elevated valuations and global is expected to be the fastest-growing large economy in 2025 and 2026, according to the International Monetary Fund. Over the last three decades, the Indian market has delivered USD-based returns of 7% CAGR—second only to the US. More significantly, these returns have been powered by earnings growth rather than valuation expansion, setting India apart of America's strategist, Amish Shah said the confluence of nine structural drivers is likely to position India for sustained economic and corporate earnings growth. He emphasized that India ranks as the top country globally in providing a high number of stock compounders, and that this trend is likely to persist.'Hence, India ranks as the top country globally to provide high number of stock compounders, a trend we expect to continue. However, we are cautious on markets near term as valuations seem full & markets are ignoring risks of likely slowing global growth,' Shah wrote in a strategy highlighted that India's outperformance is built on strong fundamentals, regulatory consistency, corporate execution, and a vast domestic consumption base. With India projected to become the world's third-largest economy this decade—surpassing Germany—the macro setup offers a compelling backdrop for this strong structural case, BofA remains cautious on India's equity markets in the short term. It expects GDP growth to come in at 6.3% in FY26, slightly below the Reserve Bank of India's 6.5% forecast, citing only a shallow revival in GDP, capex, and brokerage has retained its year-end Nifty target at 25,000, indicating no further upside after the recent rally. It flagged seven emerging risks that warrant caution on large caps and broader markets, although specifics were not stance is clear: India's long-term equity story is underpinned by deep structural change and remains one of the most attractive globally. But in the near term, stretched valuations and global headwinds demand a more conservative approach.
Yahoo
2 days ago
- Business
- Yahoo
Jim Cramer and Wall Street Are Bullish on Capital One Financial Corporation (NYSE:COF)
We recently published a list of . In this article, we are going to take a look at where Capital One Financial Corporation (NYSE:COF) stands against other stocks on Jim Cramer and Wall Street's radar. During April 24's episode of Squawk on the Street, Cramer made the following comment about Capital One Financial Corporation (NYSE:COF): 'We own Capital One. Now I don't know… people… in your world, this Capital One, it got approved, and, and, Fairbank is gonna stand there after this thing closes, and I think he's gonna buy back a ton of stock because his stock is really cheap and he's a reaallyy good banker […] Capital One, they're supposed to be missing the quarter, people are supposed to be defaulting. It is the oddest time, it's the strangest angst, David, I see people having angst and doing crazy things. They have angst, and they're paying off their credit. You know when you have angst, you default.' A smiling face of a customer as they make a deposit at this company's branch. Capital One Financial Corporation (NYSE:COF) provides a broad range of financial services, including banking, lending, and credit products. The company offers checking and savings accounts, various types of loans, and digital banking services to individuals, small businesses, and commercial clients. On May 21, BofA analyst Mihir Bhatia increased the price target for Capital One (NYSE:COF) to $233 from $223 and maintained a Buy rating after the recent acquisition of Discover Financial. The analyst highlighted that the closed-loop Discover network provides significant strategic opportunities that could strengthen Capital One's deposit, banking, and card businesses. The firm noted that credit metrics are improving and expects expense synergies to be easily attainable. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
