Just one month after setting the S&P 500 2024 forecast, Goldman has raised it

The S&P 500 is now projected by Goldman Sachs analysts to hit a record high of 5,100 in 2024 due to declining inflation and anticipated Federal Reserve easing.

The year-end objective represents a P/E larger than 19x, while the 3-month and 6-month targets are set at 4,800 and 4,900, respectively.#

Positive economic data releases, like the PPI and CPI, have reinforced the bullish picture. The forecast for the economy is looking even more promising, according to Goldman Sachs.

“The improving economic outlook suggests a more favourable atmosphere for initial public offerings (IPOs). Stocks with weaker balance sheets, especially those that are susceptible to economic growth, may profit from resilient growth and declining rates”, according to analysts' notes.

The experts' 2024 S&P 500 earnings forecast is subject to upside risk.

"The median strategist forecast of $230 is compared with our top-down EPS projection of $237”. The experts continued, "Financial circumstances have significantly eased since October and should increase economic activity and firm profitability.”

Goldman's IPO barometer, which measures how conducive the macroenvironment is to IPO issuance, surged to 89 and is very close to the point correlated with the average frequency of IPOs.

"Going forward, increased share prices and a better cost of capital would suggest the most favourable new issuance environment in almost two years," the analysts concluded.

(Sources: investing.com, reuters.com)