Home Editor's Picks Barclays raises S&P 500 price target as US economy continues to defy headwinds

Barclays raises S&P 500 price target as US economy continues to defy headwinds


Barclays raises S&P 500 price target as US economy continues to defy headwinds By Investing.com

Breaking News


AuthorSam BougheddaStock Markets

Published Feb 27, 2024 07:24AM ET

© Reuters. Barclays raises S&P 500 price target as US economy continues to defy headwinds

Analysts at Barclays have raised their price target for the S&P 500 in 2024 as the US economy continues to defy rate headwinds.

The bank revealed it now sees the S&P 500 reaching 5300 in 2024, up from its previous estimate of 4800. The new target is based on its recent sum-of-the-parts valuation framework.

“This reflects our view that inflation will continue to normalize while the economy remains relatively resilient and that Big Tech will maintain leadership in NTM earnings growth, resulting in 22.5x our revised base case FY24 S&P 500 EPS estimate of $235,” Barclays explained.

The bank believes “Big Tech earnings exceptionalism” justifies a premium multiple for the group, while they see SPX excluding Tech, trading roughly in line with fair value amid easing inflation headwinds and a shallower reset to economic growth.

The firm’s bull and bear case scenarios primarily revolve around big tech, which they believe has a growing influence on the US equity market as a whole.

“If the Big Tech extends its beat-and-raise streak and we assume ex-Tech negative revisions have bottomed, we could see the S&P 500 going to 6050 on $252 EPS,” added Barclays. “On the other hand, if Big Tech begins to fall short of the ever-higher bar being set for its quarterly earnings while the macro backdrop softens unexpectedly, we could see the index falling to 4500 on $221 EPS.”

Even so, Barclays feels the risk/reward is tilted toward the bull case, as macro data suggests the odds of an economic re-acceleration are beginning to outweigh the probability of even a mild recession.

Barclays raises S&P 500 price target as US economy continues to defy headwinds

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News