Reported about 1 year ago
Goldman Sachs' strategist team led by David Kostin has raised their year-end target prediction for the S&P 500 index significantly from 5200 points to 5600 points due to lower-than-average profit revisions and a perceived higher justified P/E multiple. This marks the third upward adjustment since their initial target release in November last year. The team remains optimistic on the profit growth of the top five tech companies, leading to a positive outlook despite common negative EPS forecast revisions. While Goldman's latest forecast for the S&P 500 suggests a modest 3.1% increase from Friday's closing price, Kostin believes there is no further room for a rise in the US stock market by the end of this year. Additionally, they foresee potential scenarios where the index could surge to 6300 points if large-cap stocks continue to outperform, or drop to 4700 points if profit predictions turn out to be overly optimistic or recession fears reemerge.
Source: YAHOO