Why UBS is bumping up its price target for the stock market
Earnings growth that has been broadening out, expected Federal Reserve rate cuts and an improving inflation backdrop were among the factors that UBS Global Wealth Management pointed to as it bumped up its price target for the S&P 500.
David Lefkowitz, head of U.S. equities, said third-quarter earnings were “off to a good start” and that his team expects 11% earnings growth this year and 8% next year, in a Thursday client note.
“With the Fed now signaling it intends to be ahead of the curve in an effort to mitigate recession risks, we bump up our June 2025 S&P 500 price target to 6,300,” from 6,200, he wrote.
“We also introduce a December 2025 price target of 6,600.”