Jefferies (JEF) raised its year-end target for the benchmark S&P 500 (SPX) index to 6,600, up from its proper estimate of 5,600. The firm pointed to strong corporate earnings in Q2, continued gains in AI-related companies and the “Magnificent Seven” stocks, and easing worries about the U.S. economy as the main reasons for the higher call.
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Analyst Highlights Strong Earnings
The firm said that of the 474 S&P 500 companies that reported Q2 results so far, about 80% beat analyst expectations, well above the historical average of 67% and higher than the prior four-quarter average of 76.4%, according to data compiled by LSEG. Jefferies said this earnings strength shows corporate America remains healthy despite trade and interest rate uncertainties.
Also, the firm expects S&P 500 earnings per share to rise about 10% this year to $267, showing steady profit growth.
Is the SPDR S&P 500 ETF Trust a Buy?
The SPDR S&P 500 ETF (SPY) has a consensus Moderate Buy rating among 504 analysts. That rating is based on 419 Buy, 79 Hold, and six Sell recommendations issued in the last three months. The average SPY price target of $716.75 implies 11.07% upside from current levels.
