① Deutsche Bank set its target point for the S&P 500 index at the end of 2025 at 7000 points on Monday, and expects strong earnings growth for US companies to continue into next year Barclays has raised its target price for the S&P 500 index in 2025 from 6500 points to 6600 points, citing the strong US economy, gradually falling inflation, and strong potential profit growth for large technology companies.
Since Trump won the US election, the US stock market has repeatedly hit new highs and is expected to set more records in the future. In recent days, Wall Street investment banks have successively raised the target price of the S&P 500 index for next year.
Deutsche Bank set its target point for the S&P 500 index at the end of 2025 at 7000 points on Monday, and expects strong earnings growth for US companies to continue into next year.
Earlier that day, Barclays raised its target price for the S&P 500 index for 2025 from 6500 points to 6600 points, citing the strong US economy, gradually falling inflation, and strong potential profit growth for large technology companies.
Deutsche Bank's forecast is nearly 17% higher than the latest closing price of the S&P 500 index, while Barclays' forecast is over 10% higher than the latest closing price.
On Monday (November 25th), the US stock market opened high and closed high, with the three major indexes collectively closing higher, with the Dow Jones Industrial Average closing at a historic high. As of the close, the Dow Jones Industrial Average rose 0.99% to 44736.57 points, and the S&P 500 Index rose 0.30% to 5987.37 points, both breaking records during trading; The Nasdaq Composite Index rose 0.27% to 19054.84 points.
Deutsche Bank predicts that the new US government will implement tax cuts and deregulation measures to promote economic growth in the United States.
Deutsche Bank analysts say that from a supply and demand perspective, the US stock market remains robust, and the driving factors of the past two years - massive capital inflows and strong buybacks - will continue until 2025. The investment bank also expects the index's earnings per share (EPS) to grow to $282 by 2025.
We expect the repurchase scale of the S&P 500 index to rise from the current annual $1.1 trillion to around $1.3 trillion next year, growing in sync with profits, "said a Deutsche Bank analyst. We believe that even with conservative assumptions, the supply and demand background of the US stock market will remain stable, driving the S&P 500 index to around 7000 points next year
Barclays stated that large technology companies will continue to drive profits for the S&P 500 index. The bank raised its earnings per share expectation for the S&P 500 index from $268 to $271.
We believe that for the US stock market, macro positive factors will outweigh negative factors next year, "Barclays analysts wrote in a report.
Barclays stated that the Federal Reserve is expected to continue its monetary policy easing cycle, while the uncertainty after the US presidential election has been eliminated and the unemployment rate remains low, which may collectively boost the S&P 500 index.
Wall Street optimism spreads
In the past few days, several investment banks have raised their target prices for the S&P 500 index.
Last week, both Goldman Sachs and Morgan Stanley predicted that the S&P 500 index could touch 6500 points by the end of 2025, citing sustained growth in the US economy, strong corporate profits, and the Federal Reserve's path of interest rate cuts.
UBS also pointed out in a research report last week that in the next 2025, the S&P 500 index is expected to break through 7000 points, possibly reproducing the prosperous scene of the famous "roaring 1920s" in history.
Yardeni Research, a market research firm, also believes that given Trump's victory and the Republican Party's domination of both houses of Congress, the likelihood of a "roaring 1920s" scenario is increasing. The company expects that the new Trump administration may push the S&P 500 index up to 7000 points by the end of next year.