Goldman Sachs (GS, Financials) reaffirmed its 12-month forecast for a 9% increase in the S&P 500, setting a target of 6,300 for the index despite the recent election results.
The bank's view on equities has not changed with Donald Trump's triumph as the 47th U.S. president; strong earnings growth expected to underpin market gains into 2025.
Setting the estimate at 6,300—a projected 9% increase from present levels— Goldman Sachs maintained its 12-month aim for the S&P 500 index. Strong profit performance will support this increase, according to the bank; ongoing market appreciation is expected till 2025. Goldman's optimistic view is supported by predictions of 11% increase in profits per share next year.
Goldman also mentioned a possible post-election surge, stressing that lower political uncertainty would favorably affect markets in line with past presidential election years.
Historically, Goldman Sachs observed, the S&P 500 index has given a typical return of 4% between Election Day in November and the calendar year-end. Should this trend continue, the index might reach almost 6,015 by the close of 2024, corresponding with a forward price-to-earnings multiple of 22.
