© Reuters. Oppenheimer predicts the S&P 500 will end 2024 at 5,200
Oppenheimer Asset Management predicts that strong earnings growth and a resilient economy will lead to a record 5,200 by the end of 2024, which is about a 13% increase from the current level.
“Markets do not rise in a straight line and setbacks are always likely, but those with patience and perseverance should see medium- and long-term gains,” Oppenheimer analysts wrote in the 2024 outlook.
Analysts forecast earnings growth of 9%, reaching EPS of $240, and assume a P/E multiple of 21.7x.
“With only two companies left to report third-quarter results among the S&P 500, results have been stronger than expected with earnings growth of 4.5% year-over-year and revenue growth of 1 .9%. Before the season began, bottom-up estimates were calling for earnings to decline 0.5% from a year ago,” the analysts said in a note.
Oppenheimer has one of the highest S&P 500 2024 targets among strategists.
They see 2024 as a transition year for the Federal Reserve, moving from a tight monetary policy to a more accommodative stance, with a preference for cyclical sectors and continued gains in technology, communications services and consumer discretionary sectors.
“We believe the Federal Reserve wants to avoid pushing the economy into a recession,” the analysts added.
“Our expectations are that the Federal Reserve will wait to cut its benchmark rate until at least the second half of next year and perhaps until the fourth quarter if inflation becomes tighter.”
