The stock market could continue rallying to record heights from here, according to Evercore ISI. The firm raised its year-end target for the S & P 500 to 6,000 from 4,750. This updated forecast is 10.5% higher than Friday’s closing level of 5,431.60. The new price target also now marks the highest on Wall Street, the CNBC Market Strategist Survey shows. Evercore ISI’s Julian Emanuel pointed to healthy company fundamentals underlying the equity market as one catalyst for the bullish outlook. He predicted earnings per share growth of 8% and 5% in 2024 and 2025, respectively. .SPX YTD mountain SPX year to date “The backdrop of slowing inflation, a Fed intent on cutting rates and steady growth have supported Goldilocks,” the strategist wrote. “High multiples are supported by companies’ proven record of managing costs and maintaining/growing margins.” Emanuel also pointed to the artificial intelligence-driven rally as another factor that could blow the S & P past its old target. “Today, Gen AI’s productivity potential in every job and sector is inflecting,” he said. “High valuations can remain high for extended periods.” Enthusiasm over AI has pushed the S & P 500 to record levels this year, with the S & P 500 blowing past Emanuel’s previous year-end target. The broad market index is up nearly 14%. AI darling Nvidia has led those gains, up more than 200% in 2024. Emanuel added that the 7,000 level for the S & P 500 is achievable by the end of 2025. That would entail about a 29% surge from Friday’s close.
