Goldman Sachs upgrades S&P 500 targets on positive economic outlook

Goldman Sachs has raised its year-end target for the S&P 500 index to 6,000 from 5,600 and its 12-month target to 6,300 from 6,000, reflecting expectations of higher corporate margins and a stable economic environment through 2025. This suggests a potential 4.32 per cent increase from the index’s recent close of 5,751.07.

The firm also increased its 2025 earnings per share (EPS) estimate for corporate America to $268, up from $256, indicating an annual growth rate of 11 per cent. The 2024 EPS forecast remains at $241.

Analysts attribute these revisions to improved margin expansion and a favorable macro backdrop, fueled by strong consumer spending and a rebound in corporate profits.

Additionally, Goldman noted that a rise in mega-cap technology stocks and recovery in the semiconductor industry will further support EPS growth, positioning the market for continued strength in the coming months.

Attribution: Reuters

Subediting: M. S. Salama