BofA Global Research raised its year‑end targets for Japanese equities, flagging
stronger‑than‑expected AI demand, a higher probability the Strait of Hormuz
stays open and improving corporate ROE. It lifted its Nikkei 225 year‑end target
to 76,000 from 67,000 and its TOPIX target to 4,400 from 4,200. BofA said ROE
gains to date were mainly driven by margin improvement, but as the manufacturing
cycle recovers leverage expansion is likely to become the new driver.
