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Analysts Turning Bearish on S&P 500 because rally has pushed 34 percent of the companies in the Standard & Poor’s 500 Index above analysts’ price targets for the next year. Caterpillar Inc., the largest maker of excavators, and Citigroup Inc., the bank rescued by $45 billion in U.S. taxpayer funds, are among 170 companies that trade above their average price estimates, data compiled by Bloomberg show.

With more than a third of the companies in the benchmark index for U.S. stocks overvalued compared with their price targets, the S&P 500’s fair value is 970.21, compared with its 929.23 close on May 8. That means it has to go down 4% to reach it’s fair value.

Bank of America Corp., Citigroup Inc., Wells Fargo & Co. and GMAC LLC are among the companies judged to need additional capital according to results of regulators’ stress tests on the 19 largest U.S. banks.

Bank of America has the biggest shortfall, at $34 billion. Citigroup’s requirement for deeper reserves to offset potential losses over the coming two years is about $5 billion. Wells Fargo requires about $15 billion, while GMAC’s need is $11.5 billion.

Goldman Sachs Group Inc., Morgan Stanley, MetLife Inc., JPMorgan Chase & Co., Bank of New York Mellon Corp. and American Express Co. were deemed not to need additional funds, the results show.

U.S. stocks declined, as concern grew that credit losses are worsening. Bank of America Corp., tumbled 13 percent as rising charge-offs for uncollectible loans overshadowed better-than-estimated earnings. Citigroup Inc. dropped after Goldman Sachs Group Inc. said the bank’s credit losses are growing at a “rapid rate.” Although Citigroup posted first-quarter net income of $1.6 billion last week, it suffered an “underlying” loss of 38 cents a share.