Ubs Sets New Target For Sp 500

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Ubs Sets New Target For Sp 500

UBS Sets 6400 As New Target For S&Amp;Amp;P 500

UBS has changed the target for the S&P 500 index after looking at recent events. According to UBS, the S&P 500 index will likely reach 6400 by the end of 2025.

That's a change of +8% from the earlier forecast of 6000 and shows that the UBS is more bullish on the US stock market. The UBS has also set a new target of 5850 for the end of 2024. Once again, this is higher than the earlier target of 5600.

S&Amp;Amp;P 500 Index To Gain 9.2%

According to the UBS strategists, the US stock index will gain 9.2% during the next 15 months. The key drivers for this upside will be improved economic conditions in the USA and strong earnings growth.

The UBS has also shared the EPS target for 2024 and 2025 at $240 and $257, respectively. For the year 2026, they have set an even higher EPS target of $275.

If we look at the EPS growth in terms of percentage, that's a growth of 9.1% in 2024 and 7.1% in 2025. For the year 2026, the EPS target means a growth of around 7%.

UBS believes the rate cuts will be help for the US economy and will also lower the default risk. At the same time, it will boost the valuations and the earnings of the listed companies.

At the same time, the risks of recession have hit a new due to improved liquidity and better financial conditions.

As for revenue growth in 2025, UBS has forecasted 4.8%. They have also highlighted how the tech sector will play a key role in that.

Over all, it seems that the UBS is bullish about the S&P 500 for this year and the next 2 years as well. After all, we have already entered into the era of lower rates and the conditions will only improve further from here.

Generally, lower rates are good for the stock markets and that's exactly what we are seeing in the case of S&P 500.

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