Citi Strategists Raise S&P 500 Target On Resilient Earnings

Strategists at Citigroup Inc. raised their target for the S&P 500 Index, saying tax cuts should offset the negative impact from tariffs on US companies.

The team led by Scott Chronert increased its year-end target for the equity index to 6,600 points from 6,300, suggesting gains of about 3% from Friday’s close.  

A better-than-expected earnings season, with little evidence of the harmful impact of tariffs on results, has spurred stocks to fresh records this month. Over 81% of S&P 500 companies have beaten estimates, according to Bloomberg Intelligence, the highest in seven quarters. 

Companies have produced “an impressive beat,” while also mostly sticking with their projections for the second-half of the year, the Citi team said. As a result, consensus views on earnings per share are moving higher.