Bank of America CorporationStrategists raised their earnings per share forecast for the index to $204 a share from $185 in 2021 because of strong first-half results.
Strategists Savita Subramanian and Ohsung Kwon wrote in a report that they raised their 2022 earnings per share forecast to $215 from $205.
Strategists expect growth to slow next year because of rising inflationary pressures. "as sales growth slows into 2022 and wages rise, profit margin expansion in 2022 is likely to be even more tepid". Potential tax increases could have a negative impact on 2022 earnings by 5 per cent.
If economic growth slows, wage pressure could turn into a headwind, with discretionary consumer goods stocks facing the greatest risk of rising wages.