Economic news

Deutsche Bank raises S&P 500 year-end target to 5,750 from 5,500

2024.09.13 02:53

(Reuters) – Deutsche Bank has raised its year-end target for the benchmark to 5,750 points from 5,500, citing rising stock buybacks, strong corporate earnings and robust inflows, boosted by strong risk appetite.

“We see S&P 500 earnings growth continuing to run robustly in the low double digits, in line with typical growth rates outside of recessions,” Deutsche Bank strategists said in a note on Sept. 12.

The new target represents a 2.75% upside to S&P’s close of 5,595.76 on Thursday.

Rising U.S. rate cut expectations this year and the hype surrounding artificial intelligence (AI) have boosted the index, with many brokerages lifting their annual targets for the benchmark and some expecting it to end 2024 as high as 6,000.

In May, Deutsche Bank raised its year-end target for the S&P to 5,500, banking on strong corporate earnings to support equity valuations.

The brokerage said a recent pullback in stocks in August due to fears of a weakening labor market and de-rating of technology stocks seems “done” for now, with positioning falling back in line with earnings growth.

It added that fears of a cooling labor market have been put to rest with August payrolls growth steadying on a year-to-date basis.

Some aspects that will strengthen the market include a move from “de- to re-stocking”, a pickup in capital expenditure outside tech stocks, broader manufacturing recovery, and a rise in consumer confidence, strategists led by Binky Chadha, chief U.S. equity and global strategist at Deutsche Bank, said.

The brokerage expects share buybacks to rise to about $1.2 trillion next year as they keep up with earnings, from the current $1 trillion.

© Reuters. FILE PHOTO: The logo of Deutsche Bank is seen in Brussels, Belgium December 6, 2022. REUTERS/Yves Herman/File Photo

Inflows into equities have been strong over the last four months and have defied typical seasonality, “which raises prospective corporate earnings and equity returns,” it said.

Deutsche Bank also reiterated its earnings per share (EPS) forecast for S&P 500 companies at $258 for 2024 and $285 for 2025.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 103,079.62 3.63%
ethereum
Ethereum (ETH) $ 2,348.06 20.61%
tether
Tether (USDT) $ 1.00 0.03%
xrp
XRP (XRP) $ 2.41 9.14%
bnb
BNB (BNB) $ 638.44 3.97%
solana
Solana (SOL) $ 173.65 12.75%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.208379 13.67%
cardano
Cardano (ADA) $ 0.795706 10.65%
tron
TRON (TRX) $ 0.263729 5.10%
staked-ether
Lido Staked Ether (STETH) $ 2,341.80 20.37%
sui
Sui (SUI) $ 4.01 7.24%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 102,994.60 3.42%
chainlink
Chainlink (LINK) $ 16.33 10.01%
avalanche-2
Avalanche (AVAX) $ 23.71 13.26%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,833.71 20.70%
stellar
Stellar (XLM) $ 0.302795 10.62%
shiba-inu
Shiba Inu (SHIB) $ 0.000015 14.53%
hyperliquid
Hyperliquid (HYPE) $ 25.41 17.55%
hedera-hashgraph
Hedera (HBAR) $ 0.202685 9.07%
the-open-network
Toncoin (TON) $ 3.29 5.61%
bitcoin-cash
Bitcoin Cash (BCH) $ 415.34 0.18%
leo-token
LEO Token (LEO) $ 8.74 0.74%
usds
USDS (USDS) $ 1.00 0.00%
litecoin
Litecoin (LTC) $ 98.86 7.39%
polkadot
Polkadot (DOT) $ 4.69 10.22%
weth
WETH (WETH) $ 2,342.43 20.26%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,494.38 19.73%
monero
Monero (XMR) $ 303.95 2.21%
pepe
Pepe (PEPE) $ 0.000013 40.06%
bitget-token
Bitget Token (BGB) $ 4.49 3.51%
pi-network
Pi Network (PI) $ 0.739935 19.47%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.05%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 103,045.61 3.49%
ethena-usde
Ethena USDe (USDE) $ 0.999373 0.07%
whitebit
WhiteBIT Coin (WBT) $ 30.27 4.04%
uniswap
Uniswap (UNI) $ 6.36 21.93%
bittensor
Bittensor (TAO) $ 431.24 7.73%
aptos
Aptos (APT) $ 5.72 12.37%
near
NEAR Protocol (NEAR) $ 2.93 17.96%
dai
Dai (DAI) $ 1.00 0.05%
ondo-finance
Ondo (ONDO) $ 1.03 11.92%
okb
OKB (OKB) $ 54.10 4.63%
aave
Aave (AAVE) $ 210.71 12.09%
susds
sUSDS (SUSDS) $ 1.05 0.01%
ethereum-classic
Ethereum Classic (ETC) $ 19.21 11.15%
crypto-com-chain
Cronos (CRO) $ 0.100995 5.96%
official-trump
Official Trump (TRUMP) $ 14.30 18.04%
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00 0.00%
internet-computer
Internet Computer (ICP) $ 5.31 9.35%