The bank raised its 2026 earnings-per-share estimate to $340, driving the new year-end index forecast with minimal multiple expansion.
Wells Fargo increased its year-end 2026 S&P 500 target to 7,950 from 7,300, reflecting a 5.2% upside from the June 16 close near 7,554. The revision stems from higher earnings expectations, not valuation expansion, the bank said in a June 15 note.
a 23.4x multiple on 2026 earnings, slightly above the prior 23.2x, but still elevated compared to long-term averages near 17-18x
Chief equity strategist Ohsung Kwon stated the equity market’s upward trajectory remains intact, driven by profit growth rather than investor sentiment. The move aligns with a broader trend of banks adjusting forecasts amid resilient economic data.