UBS lifts 2024 year-end S&P 500 target to
5,150, tops big banks
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[January 16, 2024]
(Reuters) - UBS Global Research increased its year-end target for
the S&P 500 on Tuesday to 5,150, marking the highest projection among
major global banks and indicating a potential 8% upside from current
levels.
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A UBS logo is seen next to Credit Suisse at the Bahnhofstrasse before a
news conference of Swiss bank UBS in Zurich Switzerland, August 30,
2023. REUTERS/Denis Balibouse/File Photo |
The
European brokerage had earlier expected the index to end the
year at 4,850.
UBS' view on the benchmark index is supported by growing bets of
the U.S. Federal Reserve cutting interest rates this year, a
decline in inflation and resilient earnings expectations.
It also expects a 6.3% growth in earnings of S&P 500 companies
this year, below consensus estimate of 11.4%.
"While earnings should drive 2024 returns, falling interest
rates should support incrementally higher multiples," UBS
strategists said in a note.
The index ended last year with an annual gain of more than 24%.
It closed about 0.1% higher on Friday at 4,783.83 points.
(Reporting by Roshan Abraham in Bengaluru; Editing by Sonia
Cheema and Dhanya Ann Thoppil)
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