Major U.S. lender and investment banking company Citigroup lifted its S&P year-end target by 15% as the probability of an economic recession continues to decline amid cooling inflation.
The bank is forecasting the S&P 500 to end on 4,600 points at the end of 2023; a 0.4% rise from the 4,582.23 at Friday’s close. Citigroup also raised its target for 2024 from 4,400 points to 5,000 points; a 9% rise from current levels.
According to the New York City-based lender, companies listed on the S&P 500 are expected to draw in earnings of $220 per share on average for the current year; up from the previous forecast of $215 per share.
Citigroup’s change in target comes as it lowers its bets on the likelihood of a U.S. recession in the fourth quarter of 2023. Instead, the bank pushed this probability out to the first quarter of 2024.