S&P 500 target raised to 5500+ at Wells Fargo on strong earnings growth

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S&P 500 target raised to 5500+ at Wells Fargo on strong earnings growth

Wells Fargo’s team of strategists lifted the price target on the S&P 500 to 5535 from the prior 4625 as they hiked their 2025 earnings estimate to $270 and the index being valued at 20.5x earnings. The new price target implies an upside potential of more than 6% compared to Friday's closing price.

Wells Fargo also highlights a potential increase in systemic risk facilitated by current monetary policies promoting risk and leverage.

“We believe equities do have some upside from current levels, but we still anticipate a volatility spike in 1H24,” the report noted.

 

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