Jefferies raises its target for the SP500.

Jefferies increased its annual target for the S&P 500 to $4, 900 from a previous $4,700. The upward revision cites the growth outlook for the U.S. economy.
-“We continue to expect the economy to slow in 2024, but not sharply enough to seriously squeeze profit margins,”
-The target for the end of the new year implies a 3.9 percent decline in the S&P 500 Index from Friday’s close
-Jefferies analysts also raise the S&P 500’s 2025 earnings forecast to $270 per share from $260
-Jefferies models 9.2% EPS growth in the S&P 500 this year, down s 0.1% from the 9.3% target given in December 2023.
-Jefferies also upgraded financials stocks to overweight from neutral. They downgraded Consumer Staples to neutral from overweight.
-“We prefer sectors with strong balance sheets and earnings support, led by infotech, communications services, financials and health care,” Jefferies strategists say.

Although Jefferies is raising its SP500 expectations, they remain some of the most skeptical players on Wall Street.
-Wells Fargo has a $5,535 target, Oppenheimer has a $5,500 target, HSBC, BofA and UBS have a $5,400 target, while Goldman Sachs has a $5,200 target for the SP500 at year-end.

The average banking consensus is even more optimistic.
-51% Buy ratings with an average consensus target of $5,750 or 12.8% return potential versus Friday’s closing levels.

In conclusion:
Аlthough the US GDP rate is slowing and inflation is showing signs of resilience, the long-term trend and sentiment for the US market remains bullish, with any deeper correction in the SP500 seen as an opportunity to “buy on the cheap.”