NOV 13 — Morgan Stanley said today it expects the S&P 500 to end 2024 at 4,500, and predicted earnings recovery through the year.
The target represents a 2 per cent upside from current levels. The index on Friday closed 1.6 per cent higher at 4,415.24.
Strategists at the brokerage led by Michael Wilson expect a 7 per cent uptick in earnings per share (EPS) for index companies next year, along with a 4-5 per cent revenue growth and “modest” margin expansion amid easing labor costs.
However, near-term earnings headwinds will persist into early next year before a “durable” recovery takes hold, Wilson said.
Wilson sees strong earnings environment in 2025 with a 16 per cent jump in profit driven by artificial intelligence-led improvement in productivity and margin expansion. — Reuters
