Goldman Sachs Elevates S&P 500 Forecast to $5,200 Amid Bullish Profit Outlook

📝 SUMMARY: Goldman Sachs Group Inc. ($GS) has revised its forecast for the S&P 500 Index (.$INX) upwards for the second time this year, now setting a target of $5,200 by the end of 2024. This adjustment comes as the stock market recently surpassed the 5,000 milestone, a significant achievement reflecting the market's resilience and growth. The revision, led by strategist David Kostin, is driven by increased profit estimates, indicating a bullish outlook on corporate earnings and economic strength.

Initially, in November, Goldman Sachs projected that the S&P 500 would reach $4,700 by the year's end. However, as the market dynamics evolved, Kostin updated his forecast in mid-December to $5,100, a figure that the latest target now surpasses by about 2%. This new target implies a 3.9% increase from the current level, suggesting confidence in the market's potential for further gains.

The uplift in Goldman Sachs' S&P 500 target to $5,200 aligns the firm with some of the most bullish forecasts on Wall Street. Notably, it joins optimistic outlooks from other leading analysts such as Tom Lee of Fundstrat Global Advisors and John Stoltzfus of Oppenheimer Asset Management, who have similarly high expectations for the market's performance by the end of the year. This consensus among top strategists reflects a positive sentiment towards the stock market's direction, underpinned by strong profit growth and economic indicators.

🔍 SOURCE: https://www.bloomberg.com/news/articles/2024-02-18/goldman-sachs-lifts-s-p-500-target-to-5-200-on-profit-expansion?srnd=premium