S&P 500 target raised to 8,000 on strong earnings growth
Morgan Stanley has raised its S&P 500 year-end target to 8,000 from 7,800, driven by strong earnings growth.
The firm set 2026 earnings per share for S&P 500 components at $339, a 23% increase year-on-year.
The bank warned that hot inflation forcing rate hikes is the principal bear-case risk, which could push the index to 5,900.
Morgan Stanley also raised its mid-2027 MSCI Europe target to 2,700 from 2,600, contingent on the Strait of Hormuz reopening in the coming months