CoinVoice has learned that Goldman Sachs has once again raised its target for the S&P 500 index in less than two months. In a report led by David Kostin, Goldman Sachs strategists wrote: “The Federal Reserve has implemented easing measures earlier and more deeply than expected, bond yields are lower than our previous expectations, the fundamentals of large stocks remain strong, and investors are willing to overlook potential short-term earnings weakness, all support our decision to raise the expected forward price-to-earnings ratio for the S&P 500 index from 20.4 times to 22 times. The expected returns for the S&P 500 index over the next 3 months, 6 months, and 12 months have been raised to +3%, +6%, and +11%, respectively, with new target levels of 6,400 points, 6,600 points, and 6,900 points, while previous forecasts were 5,900 points, 6,100 points, and 6,500 points.”
Strategists maintain their forecast for S&P 500 earnings per share to grow by 7% in both 2025 and 2026, but believe this forecast faces two-way risks. The key downside factor for earnings per share forecasts is the final level of tariffs and their impact on corporate profits. Although a narrowing breadth often indicates a risk of decline greater than average, analysts at the firm believe that 'chasing gains' is more likely than 'chasing losses,' and expect the market rally to expand in the coming months, overweighting software and services, materials, utilities, media and entertainment, and real estate. [Original link]