00:00Goldman Sachs strategists joined peers at Morgan Stanley and Deutsche Bank seeing a 17 percent return for the S&P
00:07500 index this year. Goldman now sees the benchmark topping 8000 by the end of 2026. That's up from its
00:147600 target. Let's discuss with Bloomberg senior strategist Michael Masika. Michael you know what what's the detail we have from
00:22Ben Snyder over at Goldman Sachs.
00:25Hi Matt. Well this this is a very it's a very simple explanation. It's all about earnings growth. The market
00:33has been underestimating what will be the earnings growth for the S&P 500 driven by AI and essentially by
00:41AI capex.
00:42What we see here is a 24 percent earnings growth for this year followed by another 13 percent earnings growth
00:50next year.
00:50And the target from Snyder is literally a function of that. They've assessed that earnings have been growing faster than
00:58the market has been going up basically.
01:01And so they will keep rising because of that. And nothing is able to stop it at the moment.
01:08It kind of harkens back to what we're talking about UBS yesterday with Micron having to lift their target more
01:14than 200 percent to try to keep up with the rally.
01:16Michael is this 8000 target. Is it among the norm at the sell side right now. It's becoming the norm.
01:25Yes.
01:26The thing is you have bigger bull which are like around 8100 8200. But 8000 is now a bullish targets.
01:36And we have quite a few strategists being there. You mentioned earlier Deutsche Bank was there earlier this year.
01:44Morgan Stanley's Mike Wilson raised his targets. I think last week or just this month to the 8000 mark.
01:52And he's expecting 8300 by June next year. So, yeah, no sign of abating of the bullishness on the S
02:01&P 500.
02:01He's expecting 8400.
02:01C.
Comments