The current market decline has prompted one other Wall Avenue strategist to revise its S&P 500 forecast decrease for 2025.
On Friday, UBS International Wealth Administration head of US equities David Lefkowitz predicted earnings would are available in weaker than beforehand anticipated, prompting a trim to the agency’s year-end worth goal to six,400 from 6,600 on the broad-based index.
“We nonetheless consider that US shares can get better and publish positive factors for the yr. Nonetheless, current financial weak point and our expectation that tariffs can be on the increased finish of our base case prompts us to decrease our 2025 S&P 500 EPS estimate from USD 270 (8% development) to USD 265 (6% development),” Lefkowitz wrote in a be aware.
“We subsequently trim our year-end S&P 500 worth goal from 6,600 to six,400,” he added.
On Friday, the S&P 500 was buying and selling just under the 5,600 stage. The index fell into correction territory earlier this month, falling 10% from its February file excessive.
As of two:36:31 PM EDT. Market Open.
Regardless of a sell-off in megacap shares, Lefkowitz nonetheless expects the market to reverse course and rise by the tip of the yr, pushed partially by coverage readability, a pivot to pro-growth coverage initiatives, and AI funding.
UBS’s revision comes on the heels of a downwardly revised forecast from Goldman Sachs (GS) and RBC Capital Markets.
This week, Barclays (BCS) slashed its forecast on the benchmark index to five,900 from 6,600, primarily based on expectations for decrease earnings.
