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Goldman Sachs increased its 2024 year-end S&P 500 price target to 5,200 on Friday.
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This is the second time Goldman Sachs boosted its price target since November.
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“Increased profit estimates are the driver of the revision,” Goldman’s chief US equity strategist David Kostin said.
Goldman Sachs chief US equity strategist David Kostin is getting more bullish on the stock market, according to a Friday note.
Kostin bumped his 2024 year-end S&P 500 price target to 5,200, representing potential upside of about 4% from current levels.
This is has been entirely driven by mega-cap tech.
“If NVDA reports estimates in line with consensus, the Magnificent 7 will have grown sales by 15% year/year and lifted margins by 582 bp year/year, leading to earnings growth of 58%. In contrast, the remaining 493 stocks in the S&P 500 grew sales by 3% year/year while margins contracted by 56 bp and earnings fell by 2%,” Kostin said.
Aiding Kostin’s bullish estimate revisions is the expectation that the US economy will post solid economic growth in 2024. Economists at Goldman Sachs recently increased their US GDP growth expectations thanks to sustained strength in consumer spending and residential investment, according to the note.
“The clearest upside risks to our EPS forecasts are stronger GDP growth than we currently anticipate or continued upside earnings surprises from the mega-caps,” Kostin said.
Read the original article on Business Insider
Source: uk.finance.yahoo.com
