UBS just raised its S & P 500 year-end target to the highest among major Wall Street banks, saying it was “not bullish enough.” The bank now expects the broad market index to end the year at 5,400, 8% above Friday’s close. Originally, the firm anticipated the benchmark would rise to 4,850 by the end of 2024, but then raised its target to 5,150 in January and then again on Tuesday, citing an economic backdrop that has improved. “Despite our bullish outlook, it appears we were not bullish enough,” Jonathan Golub, chief U.S. equity strategist at UBS, said in a note. Central to the strategist’s bullish forecast is the inflation outlook, which he expects will be good for companies. He also pointed to a raft of recent economic data that has shown a resilient consumer and an expanding economy. “Demand-Driven Inflation Positive for Stocks Returns and profits are measured in nominal dollars. Put differently, higher inflation tends to be a positive for stock prices,” Golub added. “While the market sold off on more robust CPI and PPI reports last week, our work indicates that these demand-driven readings are constructive for future returns.” .SPX YTD mountain S & P 500 Golub is not the only strategist raising his forecast. On Friday, Goldman Sachs upped its target to 5,200, citing the improved earnings outlook. On average, strategists anticipate the S & P 500 will end the year at 4,961, according to a CNBC survey. The upgrades come after a strong start to 2024. The S & P 500 is higher by more than 4%, having notched fresh record highs in recent weeks.
Read More: UBS hikes its S&P 500 target to 5,400, highest on Wall Street
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