According to Wall Street's leading strategist, the first-half rally in stocks for 2023 will be supported by fundamentals. There is still upside left. Savita Subramanian, a Bank of America strategist, raised her price target for S & P500 to 4,300 in a Sunday note. The new price target is 2.6% higher than the index's closing price on Friday. In 2023, the S & P 500 gained more that 9%. Stocks have gained this year despite persistently high inflation, and signs that a recession could be coming later in the calendar year. Subramanian, however, said that investors need to be aware of the structural changes at major companies and how artificial intelligence can improve efficiency. "The easy money era is over, but it could be a positive thing." Capital-starved old economy cyclicals have become more disciplined and self sufficient, as evidenced by their lower betas and stable earnings. Subramanian said that these shifts meant stocks were not overpriced, despite the surprisingly high multiples of valuation. The current valuations aren't low but they are rarely low during profit recessions. Subramanian stated that valuations argue for price increases of 5% annually for the S & P 500 for the next decade, better than the negative returns yielded by valuation signals in the beginning of the year. Sam Stovall, CFRA, has set a target of 4,575 for major Wall Street firms.