Analysts at Swiss bank UBS Group (UBS) have raised their year-end target for the benchmark S&P 500 index to 5,600 points, the highest forecast on Wall Street.
The upgraded target is 5.6% higher than the S&P 500’s last close on May 24 of 5,304.72. UBS analysts had previously forecast a year-end target of 5,400 for the benchmark U.S. stock index.
So far in 2024, the S&P 500 has risen 12% and is at an all-time high.
The index has moved higher as investors anticipate lower interest rates later this year and amid a boom in stocks tied to artificial intelligence (A.I.).
UBS sees more gains ahead for the S&P 500, powered by strong corporate earnings and declining risks of an economic recession in America.
UBS sees S&P 500 listed companies posting earnings per share of $240 U.S. to $245 U.S., implying 11% year-over-year growth in 2024.
With its new forecast, UBS joins Deutsche Bank (DB) and Wells Fargo (WFC), which have predicted that the S&P 500 will end the year at 5,500 or higher.
The stock of UBS has risen 59% in the last 12 months to trade at $30.87 U.S. per share.
