Goldman Sachs raises S&P 500 year-end target to 4500
- S&P 500 edges up, helped by energy as investor eye rate outlook
- Amazon to invest up to $4 billion in Anthropic amid AI arms race
- Microsoft (MSFT) has no more Sell ratings as Guggenheim upgrades, admits being 'dead wrong'
- Shares slip as investors absorb 'higher-for-longer' rate outlook
- Buy Apple, Nvidia, Netflix and these other stocks on a pullback - Citi
Goldman Sachs' David Kostin raised his S&P 500 year-end target to 4500 from 4000, suggesting another 5% upside from current levels.
The commented, "We raise our S&P 500 year-end price target to 4500 (from 4000), representing 5% upside from the current 4299 level. Our unchanged 2023 EPS forecast of $224 assumes a soft landing and is above the top-down consensus of $206. GS Economics assigns a 25% probability of recession in the next 12 months, compared with 65% for consensus. The P/E multiple of 19x is greater than we expected, led by a few mega cap stocks. But prior episodes of sharply narrowing breadth have been followed by a “catch-up” from a broader valuation re-rating. The potential profit boost from AI has expanded the right tail for equities, while left tail risks from recession and hawkish Fed policy remain. We highlight a screen of cyclical laggards."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Global S&P Futures mixed in premarket
- 2 reasons Wolfe Research is on cautious this delivery stock
- 'Sell the last rate hike' strategy is in action, stocks could fall further - BofA's Hartnett
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Trader Talk
Related EntitiesGoldman Sachs, Standard & Poor's
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!