Two major brokerages raised year-end forecasts for the S&P 500 after Q1 earnings exceeded expectations by over 10 percentage points.
UBS Global Wealth Management increased its S&P 500 year-end target to 7,900 from 7,500, citing resilience in US equities amid geopolitical tensions and strong earnings. The firm expects a 6% gain from current levels in the second half of the year.
Morgan Stanley also turned more bullish, raising its year-end target to 8,000 from 7,800 and projecting 8,300 over the next 12 months. The firm highlighted Q1 earnings growth of 27%, well above the 12% consensus forecast, as the key driver for its revised outlook.
Both firms argue that robust corporate profits will outweigh geopolitical risks and other negative factors, supporting continued gains in US stocks.