Citi strategists raise S&P 500 earnings target to $365, flag concentration risk
Citi strategists raised their full-year earnings forecast for S&P 500 constituents, saying revenue trends among companies driving artificial-intelligence capital spending “should help support the AI-exposed portion of the index.” The strategy team led by Scott Chronert raised its S&P 500 earnings-per-share target by about 4% to $365. The strategists said index-level revenue growth has accelerated and profit margins have expanded further. They said the resulting improvement in earnings growth “looks more like a post-recession scenario.” However, the team warned of concentration risk, noting that just 20 stocks accounted for most of the increase in analysts’ full-year profit estimates. The strategists kept their year-end S&P 500 target at 8,100, implying about 5% upside from current levels. Bloomberg reported the comments.
The strategy team led by Scott Chronert raised its S&P 500 earnings-per-share target by about 4% to $365. The strategists said index-level revenue growth has accelerated and profit margins have expanded further.
They said the resulting improvement in earnings growth “looks more like a post-recession scenario.” However, the team warned of concentration risk, noting that just 20 stocks accounted for most of the increase in analysts’ full-year profit estimates.
The strategists kept their year-end S&P 500 target at 8,100, implying about 5% upside from current levels. Bloomberg reported the comments.