Deutsche Bank raises year-end outlook for S&P 500
Deutsche Bank has lifted its target for the S&P 500 index to 6,550 from 6,150, pointing to signs of an easing impact of tariffs on earnings and broader economic resilience, News.Az reports citing Reuters.
The German lender has become the latest bank to improve its projection for the benchmark U.S. index, joining the likes of UBS Global Wealth Management and Goldman Sachs. RBC Capital Markets raised its target on Monday.
Deutsch Bank’s estimate for the S&P 500’s earnings per share was also revised up to $267 from $240.
Writing in a note to clients, Deutsche Bank strategists led by Binky Chadha argued that the drag from tariffs is now about "one-third" of what they had previously penciled in. However, the brokerage flagged that the rally may still be choppy and punctuated by "sharp pullbacks", particularly if trade disagreements potentially escalate and de-escalate in the coming months.
On Monday, the S&P 500 rose by 0.4% to close at 5,935.94. The other main U.S. indices also ended higher, although risk appetite was somewhat dented by worries over renewed trade strife between the U.S. and China. U.S. President Donald Trump has accused China of breaching a detente over levies on critical minerals -- a claim that Beijing refuted.
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