BMO raises S&P 500 price target to 5600
In February, the investment bank’s analysts drew a line in the sand regarding the market’s outlook, setting the year-end price target for the index at 5,100. At the time, analysts believed that equities’ performance had accelerated too quickly following the significant rebound from the October 2023 low.
Moreover, historical performance patterns hint at continued gains given the market’s year-to-date performance. And while BMO still expects a significant pullback at some point, it is likely to occur at a higher level than previously expected, meaning the eventual rebound will also start from a higher base, its analysts explained.
“We are comfortable with this because we believe the market is behaving in a similar fashion to 2021 and 2023 – years where we did not give enough credit to the strength of market momentum, something we are trying to avoid this time around.” “Therefore, our new target of 5,600 would imply a year two return of 28.7% bringing the two-year cumulative performance of this bull market to 50.3% – which is roughly in line with the historical average,” they said.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.
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