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Wall Street analysts more upbeat on overseas earnings: BofA

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Analysts who follow U.S. multinationals are the most optimistic they've been in 16 months, according to Bank of America Merrill Lynch strategists.

Savita Subramanian, head of U.S. equity and quantitative strategy, tracks earnings revisions and notes that Wall Street firms have generally been raising and cutting earnings outlooks at an equal rate for the past five months. But now there appears to be a marked shift in sentiment within sectors.

Analysts are becoming less negative on stocks with foreign exposure, amid improvement in Europe and signs of a pickup in the global economy. The earnings revision ratio for the top S&P 500 companies with high percentages of overseas sales has been on an uptrend since August, and, at 0.8, is at the highest level since May 2012.