Bank of America believes the stock market could see another solid year with double-digit gains, and certain sectors poised to enjoy big gains. The Wall Street firm set its 2025 S&P 500 target at 6,666, implying an 11 percent increase from current levels. While the firm expects the broad benchmark to continue to rise, it said buyback opportunities are found in individual companies that have the ability to return cash to shareholders and benefit from new management. “We see more opportunities in stocks than indices. In particular, we like companies with healthy cash return prospects and ties to the US economy,” said Swetha Subramanian, BofA Securities of the US. head of equity and strategy, said in a note to clients. SPX YTD Mountain S&P 500 In particular, BofA said it outperformed financials, discretionary, materials, real estate and utilities. The firm expects bank stocks to benefit from optimism surrounding deregulation under the Donald Trump administration, along with a return to merger and acquisition activity. Meanwhile, real wage growth, a possible consequence of the president’s chosen protectionist policies, is positive for discretionary spending, the bank said. Additionally, increased infrastructure spending during the new administration could provide a multi-year tailwind for older economy sectors such as utilities, materials, energy and real estate, BofA said. BofA joins a group of Wall Street firms predicting double-digit returns after the presidential election. Deutsche Bank expects the S&P 500 to reach 7,000 in 2025 due to increased risk appetite. UBS recently said it expects the “Roaring 20s” period for stocks to continue. Goldman also predicted an 11% S&P 500 return for next year.