Wall Street’s biggest bull, Oppenheimer Asset Management, has set its sights on the S&P 500 reaching 7,100 by the end of 2025. This target surpasses other analysts’ predictions and reflects a bullish outlook for the stock market.
The firm points to strong fundamentals, including an earnings boost from AI-driven efficiency improvements. Analysts believe that artificial intelligence (AI) will provide significant efficiency gains in key areas, comparable to the impact of the automobile on the economy in the 1920s.
Strong consumer and job growth data also support the bull market. The ongoing rotation into different stock sectors, market capitalizations, and styles has shown further market strength. Oppenheimer’s analysts believe that AI will drive progress in challenging areas, leading to a genuine potential for greater efficiencies and economic benefits.
This target comes as other top firms, including Deutsche Bank, Barclays, and Goldman Sachs, predict an around 10% return for the S&P 500 next year. However, some bearish analysts have warned of a possible bear market in the first half of 2025.
Source: https://markets.businessinsider.com/news/stocks/stock-market-outlook-oppenheimer-spx-price-target-ai-bullish-2024-12