Deutsche Bank Sets New Target For Us Index

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Deutsche Bank Sets New Target For Us Index

Deutsche Bank Sets 5500 As New Target For SP 500

The strategists at the Deutsche Bank have raised the S&P 500's year-end target from 5100 to around 5500. Overall, that's a change of +400 points and highlights the bank's optimism over the US stock market.

The S&P 500 is trading near 5300 points for now, which means the Deutsche Bank's target is still around +200 points away.

It is also important to note that Deutsche Bank's target is for year-end. In simple words, the banks expect the S&P 500 to be near the 5500 level by the end of 2024.

13% Growth Expected In Earnings Per Share

The Deutsche Bank believes that the strong earnings cycle has led to improved confidence in the markets. So, by the end of the year 2023, this will start to be reflected in the S&P 500.

They also added that the earnings cycle of the US-listed companies has legs, which makes the whole situation a lot more interesting.

Deutsche Bank added that all the growth will not translate into stock growth this year. However, it will most definitely help the market to regain the confidence.

The one key risk factor for the US markets is the volatility arising from geopolitical risks. That's one of those things which pose a real risk to the US markets, according to Deutsche Bank.

Besides raising the price target for the S&P 500 index, the Deutsche Bank has also raised the earnings for the index. For now, they have set a $258 earnings per share target for the S&P 500 from an earlier forecast of $250 only. If we look at the adjustment based on y/y, that signifies a 13% growth.

But if the growth from the macroeconomics continue to beat the trends, it could lead to earnings of around $271/share as well.

As the Deutsche Bank has set a new bullish target for the S&P 500, the situation on the ground also favors an upside in the US stock markets. With a decline in the inflation and chances of Fed rate cuts, the things have started to look good for the S&P 500.

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