Citi says the S&P 500 has more upside in H2 and spotlights sectors it prefers
Citi Research believes that the S&P 500 (SP500) has more upside to go as the second half of 2024 trading kicks off. The brokerage’s prediction comes after Wall Street’s benchmark index logged a stellar 14.5% advance in the first six months of the year.
Citi provided the investment community with a couple of year-end target projections for 2024, the mid-year of 2025, and the year-end 2025. Moreover, Citi also spotlighted which sectors it holds an overweight, underweight, and neutral stance on.
“We look for further S&P 500 upside during 2H ’24,” Citi said in a research note on Monday.
The investment institution went on to add: “We see global growth this year running at 2.3%, a moderation from last year’s 2.7% pace. Still, our forecast is up nearly 0.5 pct pt since the start of the year as H1 data have been better than expected, and risks to our forecast look skewed to the upside.”
Listed below are Citi’s S&P target points, along with how they weight each of the 11 S&P sectors:
S&P 500 2024 Year-End Target
- Base Case: 5,600 (2.3% upside from last S&P close)
- Bull Case: 6,100 (11.4% upside from last S&P close)
- Bear Case: 4,300 (21.5% downside from last S&P close)
S&P 500 Mid-2025 Year Target
- Base Case: 5,700 (4.1% upside from last S&P close)
- Bull Case: 6,200 (13.2% upside from last S&P close)
- Bear Case: 4,700 (14.2% downside from last S&P close)
S&P 500 2025 Year-End Target
- Base Case: 5,800 (6% upside from last S&P close)
- Bull Case: 6,400 (17.1% upside from last S&P close)
- Bear Case: 4,700 (14.2% downside from last S&P close)
Overweight Sectors
Market Weight Sectors
- Communication Services (XLC)
- Industrials (XLI)
- Information Technology (XLK)
- Consumer Staples (XLP)
- Energy (XLE)
- Utilities (XLU)
Underweight Sectors