©Reuters. BMO: S&P 500 closer to his 2024 price target, but still comfortable with target price
As a result of its recent rally to new all-time highs, the stock is just 1% away from BMO Capital Markets' year-end price target of 5,100. Nevertheless, the brokerage chose to wait before revising its forecast.
“Clearly, we are beginning to receive questions from clients regarding our target stance, particularly as several of our strategists have recently raised their targets,” BMO Capital Markets analysts said in a note Tuesday. ” he said.
However, the broker chooses to maintain a non-reactive approach to decision-making. As such, BMO remains “comfortable” with its current targets and “hopes to remain patient unless future data suggests a change in base case assumptions is warranted.” Analyst.
The broker also believes that the virtually uninterrupted rise in valuations from the low and high levels of October 2023 warrants caution in the short term, especially given historical patterns.
Fortunately, the somewhat surprising strength and resilience of corporate earnings should support the stock, and BMO expects this trend to continue through the year, consistent with its above-consensus EPS forecast of $250. .
“Therefore, if, as we expect, the market encounters any weakness in the coming months, we encourage our investors not to worry too much, but rather treat such periods as opportunities to increase exposure to favorable positions within their portfolios. I would advise families,” said a BMO analyst. Capital Markets announced.
