Deutsche Bank Raises S&P 500 Forecast for 2024
Deutsche Bank has boosted its forecast for the S&P 500 in 2024 to 5,500, reflecting growing optimism among Wall Street analysts as stocks have rebounded strongly from last month's downturn.
The bank’s chief U.S. equity strategist, Binky Chadha, announced the revised target in a note to MarketWatch, marking a 400-point increase from their previous projection. This new target is about 4% higher than the S&P 500’s recent closing of 5,303.27.
The upward revision is driven by a more positive outlook on corporate earnings for 2024, with Deutsche Bank now predicting S&P 500 earnings per share to hit $258, indicating a 13% growth over the previous year. This is above the Wall Street consensus of 11.1%.
Even if these earnings projections aren’t fully met, the analysts believe that continued optimism about corporate profitability could still drive up the S&P 500’s price-to-earnings ratio, which is currently above its 5-year and 10-year averages.
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Deutsche Bank’s forecast is one of the most bullish on Wall Street. BMO’s Brian Belski has the highest target at 5,600, and Morgan Stanley’s Michael Wilson now expects the index to reach 5,400 by mid-2025.
The U.S. stock market has seen significant gains in May, with the Dow Jones Industrial Average surpassing 40,000 for the first time and the S&P 500 hitting a new record. On Monday, the Nasdaq Composite led early trading gains, while the S&P 500 and Dow Jones Industrial Average showed modest increases.
Alexander Stefanov
Reporter at CoinsPress
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