Wall Street’s stock market calls vary from bullish to bearish even in the same firm

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The soaring S\u0026amp\u003BP 500 split forecasters on what the stock market will do next with the biggest disagreements often in the same firm. Read on.

Indeed, Wilson — one of Wall Street’s staunchest bears — has maintained his S&P 500 price target of 3,900, implying a gain for the full year of just 1.6 per cent, even with the benchmark up 16 per cent at this point in 2023. While admitting he was too pessimistic on stocks in the first half of the year, the strategist hasn’t budged on his view that a boom-and-bust cycle is still underway.

At JPMorgan Chase & Co., markets chief Marko Kolanovic — who represents its house view — has sounded the alarm on lofty equity valuations, warning that investors are underestimating potential economic blows from the delayed effects of central bank tightening as well as geopolitical risks. Over at BNP Paribas, chief U.S. equity strategist Greg Boutle until Sept. 5 held the lowest year-end price target on Wall Street: 3,400. The strategist on Sept. 6 said he has moved it up to 4,150 ahead of an outlook presentation set for later this week. His call for a seven per cent drop from here is based on an expectation of cuts to earnings estimates as the economy slows.

“The sell side is about the story telling,” she said. “Nobody is looking at the price targets — the sell side is like a sounding board for the industry.”

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