Goldman boosts S&P end year target to 1060

Discussion in 'Wall St. News' started by ASusilovic, Jul 20, 2009.

  1. July 20 (Bloomberg) -- Goldman Sachs Group Inc. boosted its forecast for the Standard & Poor 500 Index, saying improving earnings will spur the steepest second-half rally since 1982.

    The benchmark index for U.S. stocks will end the year at 1,060, 15 percent above its level on June 30 and an increase from David Kostin’s prior projection of 940. The chief U.S. investment strategist at New York-based Goldman Sachs also lifted his 2009 and 2010 earnings per share estimates for S&P 500 companies to $52 and $75, which are 30 percent and 19 percent higher than his prior estimates, respectively.

    “Improvement in ex-financial earnings per share, stabilization in profit margins and higher forward EPS guidance all point to a rising market through 2009,” Kostin wrote in a report today.

    The S&P 500 rallied the most since March last week as companies from Goldman Sachs to Intel Corp. reported results that topped analysts’ estimates. Since March 9, the gauge has rebounded 39 percent amid speculation the economy is recovering.

    Kostin is now tied with Deutsche Bank AG’s Binky Chadha for the second-highest S&P 500 forecast among 10 Wall Street strategists tracked by Bloomberg News. Only JPMorgan Chase & Co.’s Thomas Lee, at 1,100, is more bullish on stocks. Barclays Plc’s Barry Knapp, who had been the pessimistic U.S. strategist, increased his projection a week ago following the 40 percent surge in the S&P 500 between March and June, the biggest gain since the 1930s.

    Strong sell recommendation or what ?:confused:
  2. I think they realize that everyone is on to their game of pump and dump, so this time the call might actually happen.
  3. [​IMG]
  4. Okay I get the pigs and sheep, but who is that gentleman at the end? :D

    Yeah I know - AJC.. :p
  5. S2007S


    Risk free money and great returns in the newest bull market yet. I was hoping for someone to raise their target to a minimum of at least 1200. :mad: :mad:
  6. Everyone has short memories. I'll give a cookie to the first person that remembers what spurred the market recovery during the last recession.
  7. Pekelo


    Did somebody say cookie?


    Start of the 2nd Gulf war...
  8. S2007S


    Historical low interest rates and the borrowing of easy money to anyone who wanted it.
  9. We might reach 1060 in exactly 6 trading days...:D
  10. Goldman has to extend their forecast soon. I'd say 1150 :cool:
    #10     Aug 4, 2009