Credit Suisse maintains S&P 500 target of 4,600 for end-2021

SPX Technologies

09/08/2021 12:12

** Credit Suisse still expects the S&P 500 index  .SPX  to
hit 4,600 by the end of 2021, an upside of ~3.6% from current
levels
    ** Brokerage initiates PT on SPX for 2022 at 5000
representing a 3.7% upside through year-end 2021, and 12.7%
through year-end 2022
    ** Credit Suisse raises its 2021 S&P 500  .SPX  EPS
estimates to $210 from $200 and 2022 EPS estimates to $230 from
$215 and sets its 2023 EPS forecast at $250
    ** Analyst Jonathan Golub sees upside to estimates as empty
shelves are restocked and the pricing power is maintained
    ** Golub adds that people will spend more as the jobless
rate drops further combined with higher wages
    ** The U.S. Labor Department's closely watched employment
report on Friday also showed the unemployment rate dropped to a
16-month low of 5.4% and more people waded back into the labor
force  urn:newsml:reuters.com:*:nL1N2PC32T
    ** Over the past five quarters, analysts have significantly
underestimated EPS, a trend we expect to continue - CS
    ** However, CS notes that rising COVID-19 cases, uncertainty
around govt stimulus and tax rates, the pending withdrawal of
QE, and removal of unemployment benefits will subdue markets
near term
    ** Adds that "depressed" Treasury yields further weighted on
investor confidence
    ** .SPX up 18.1% YTD

 (Reporting by Aniruddha Ghosh in Bengaluru)
 ((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))