Credit Suisse Raises Year-End Target on S&P 500 to 1020; Lifts Equities to 'Overweight' (SPY)

Analysts at Credit Suisse have made a surprisingly bullish call on the stock market this morning, boosting the firm's year-end target on the S&P 500 from 920 to 1050. With the S&P average trading up modestly to 951 today, Credit Suisse's target represents a gain of about 10% from current levels. In contrast, if the firm maintained its previous target, the target would represent downside of about 3% from today.

Underscoring its bullish stance, Credit Suisse lifted its investment rating on the broad equities market to Overweight, saying that the U.S. economy is now "halfway through the first 'V' of a W-shaped recession." The firm predicts that the peak of the first 'V' will be reached in the first part of Q4, attributing the run-up to "corporate inventory rebuilding and signs" that the housing market is stabilizing. Credit Suisse also points out that corporate earnings are now being revised higher for the first time since August '07.

Adding a disclaimer and even dampening the firm's bullish stance, Credit Suisse said that it believes that over the "long run (5 years) margins can't remain at abnormally high levels and de-leveraging has to occur... But let's worry about that next year."

The SPDR S&P 500 ETF (NYSE: SPY) is a great way for investors to track the index.

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