BofA Lifts Nikkei Target to 76,000 on AI Demand and ROE Gains

Bank of America has raised its 2026 year-end Nikkei 225 forecast to 76,000 and TOPIX to 4,400, citing stronger AI demand, reduced Hormuz risks, and rising corporate ROE. The upgrade follows Citi’s June 22 call lifting the Nikkei target to 90,000, with both banks highlighting tech earnings momentum and foreign inflows. BofA sees potential for the index to reach 80,000, implying nearly 15% upside, while cautioning on elevated concentration risk and possible yen strength from further BOJ tightening.