Reserve Marketplace Predictions: Wall Boulevard Worth Rounding Increase for S&P 500

• The S&P 500’s record-setting rally this year has fueled a flow of price target increases from Wall Boulevard.
• The most bullish S&P 500 price target from Evercore ISI is 6,000, representing an upside of about 7%.
• Key bullish drivers include AI gains, customer resiliency and impending Fed rate cut.

The S&P 500 has soared this year, with the index jumping nearly 15% to an all-time high in the first leg.

With the second half of 2024 approaching, Wall Boulevard strategists are updating their year-end price objectives for the S&P 500, and most of them are leaning toward bullishness when making their forecasts.

According to Bloomberg data, the typical year-end S&P 500 price target is 5,429, the average year-end price target is 5,600. The S&P 500 traded around 5,630 on Friday.

These are the latest security market predictions from one of Wall Boulevard’s most bullish strategists.

Evercore ISI: S&P 500 price target 6,000

Evercore ISI strategist Julian Emanuel went from bearish to the biggest bull on Wall Boulevard when he raised his year-end S&P 500 price target to 6,000 from 4,750.

Emanuel’s price target reflects a potential upside of seven% for the S&P 500 between now and the end of 12 months, and would constitute a full-year upside of 26%.

“The AI ​​revolution is in its early stages,” Emanuel said, “and it is believed to be a top priority for continued earnings growth.” Emanuel forecasts S&P 500 EPS growth of 8% and 5% in 2024 and 2025, respectively.

“The pandemic changed everything. Record stimulus, increased household cash balances and low leverage supported the consumer. Then came AI. Today, the productivity potential of General AI is being impacted in every job and sector. Against a backdrop of slow inflation “The Fed intends to cut rates and steady growth has supported Goldilocks,” Emanuel noted.

And while Secure Market’s valuations may be a little over the top, Emanuel said they’re right.

“High multiples are supported by companies’ proven records of cost management and maintaining/expanding margins,” Emanuel defined.

Oppenheimer: S&P 500 price target 5,900

Oppenheimer strategist John Stoltzfus raised his year-end price target on this future from 5,500 to 5,900 due to continued resilience in United States clients.

“As before, it’s a matter of the fundamentals where they stand right now,” John Stoltzfus, chief funding strategist at Oppenheimer, advised CNBC. “That includes consumer resiliency, even if the economy is slow, there’s a lot of resiliency – business resiliency, job growth, wage growth.”

The important thing is that the potential gains are being driven not by temporary investors but by long-term investors who need to invest their money somewhere to keep it safe, and stocks are the most likely winners.

Stoltzfus noted, “This is largely driven by intermediate to long-term investors, some of whom recognize that there are real threats to Social Security stability, and people realize that they need to play a role in their retirement.” needs to be fulfilled.”

Yardeni analysis: S&P 500 price target at 5,800

Yardeni Analysis this time raised its year-end S&P 500 price target to 5,800 from 5,400.

Strategist Eric Wallerstein noted that the mix of $6 trillion in shored-up money and imminent interest rate cuts from the Fed will drive up securitization costs.

“We are still targeting SPX 8000 by the end of the decade. Our 2020s scenario is being discounted more sharply than we anticipated. We do not think a rate cut is necessary, but in the second quarter With GDP now at 2% and money-market funds at $6.15, a rate cut would further fuel the recession, Wallerstein noted on Thursday.

Wallerstein said that, unlike the dot-com bubble in 2000, corporate earnings are growing faster this time, requiring a focus on sustainable price gains.

Furthermore, Wallerstein said the safe-haven market rally will need to extend to alternative corporations more than mega-cap tech stocks as AI profit generation begins to reach alternative corporations outside the sector.

Ned Davis analysis: S&P 500 price target 5,725

A strong rally in the stagnant market this year resulted in Ned Davis Analysis raising its year-end S&P 500 price target to 5,725 from the latter’s 4,900.

The analysis company said that as long as earnings continue to grow, even if moderately, it should fuel a sustained rally in stable prices.

NDR strategist Ed Clissold noted, “Earnings continue to be modestly bullish, the economy and inflation appear to be softening enough for the Federal Reserve to lower its benchmark rate, and the market is at its lowest during presidential election years.” Enjoys the rally in the end.”

Goldman Sachs: S&P 500 price target 5,600

Goldman Sachs strategist David Kostin raised his S&P 500 price target for the future to 5,600 from 5,200. The store initially predicted the index would end the year at 5,100.

Even though Kostin boosted his cost target, he cautioned that a larger focus in mega-cap tech companies and a potential slowdown in revenue growth during the second half of the year could lead to flat returns for the next six months. Is.

“Our 2024 and 2025 earnings estimates are unchanged, but the stellar earnings growth of five mega-cap tech stocks has offset the typical pattern of negative revisions to consensus EPS estimates,” Kostin noted.

UBS: S&P 500 price target 5,600

UBS raised its S&P 500 price target to 5,600 from 5,400 in May, and Storey then raised its price target in February.

The rally was driven by denial of signs of recession in the economy and expectations of GDP growth.

“Since then, the consensus 2024 GDP forecast has increased from 1.6% to 2.4%,” analysts led by Jonathan Golub wrote. “At the same time, recession/tail risks have declined on several key metrics, including the Economist Survey and the Chicago Fed’s Financial Conditions Index.”

UBS raised its earnings-per-share forecasts this year to $245 from $240 and raised its 2025 forecast to $260 from $255.

Average S&P 500 revenue is $242, in line with the ratio target for 2024, according to Bloomberg data.