Bull Market Frenzy: Top Banks Raise S&P 500 Price Targets
The S&P 500 has been on a tear, surging 23% this year and hitting 46 all-time highs in 2024. And top bank research desks are taking notice, scrambling to raise their year-end price targets as the benchmark index continues to shatter records.
A Wave of Optimism
Strategists from Goldman Sachs, UBS, BMO, and Deutsche Bank have all upped their price targets in recent weeks, citing a steady macro outlook, margin expansion, and strong corporate earnings. UBS analysts Jonathan Golub and Patrick Palfrey led the charge, boosting their target from 5,600 to 5,850 – just shy of the index’s current level. They’re forecasting a 9% rise in the next 15 months, with a 2025 target of 6,400.
Goldman Sachs Weighs In
Goldman Sachs’ chief equity strategist David Kostin has raised his target to 6,000 by December, driven by a steady macro outlook and greater margin expansion. “The primary driver of the upward revision to our 2025 EPS estimate is greater margin expansion,” Kostin said. His call is the second-highest among those tracked by Bloomberg.
BMO’s Bullish Outlook
BMO’s chief equity strategist Brian Belski has also joined the party, raising his forecast from 5,600 to 6,100 last month. He cites strong market gains so far this year, which typically lead to stronger-than-normal gains in the fourth quarter. Federal Reserve easing and a broadening market rally will only fuel further gains, he says.
Deutsche Bank Joins the Fray
Deutsche Bank has also upped its year-end target for the S&P 500, from 5,500 to 5,750. The bank’s strategists point to strong corporate earnings, inflows, and rising stock buybacks, as well as higher risk sentiment.
A Chorus of Optimism
The target raises come amid a growing chorus of strategists turning decidedly more upbeat on the market. JPMorgan’s chief equity strategist Dubravko Lakos-Bujas recently recommended investors get less defensive after a strong September jobs report. While risks persist – including the upcoming US presidential election and uncertainty around monetary policy easing – the bull market shows no signs of slowing down.
Leave a Reply