Goldman ups S&P 500 forecasts, sees 10% rally over next year

Goldman Sachs Chief U.S. equity strategist raised the firm’s 2025 S&P 500 earnings per share forecast to $268, up 11% year-over-year, from $256 and introduced a 2026 earnings per share estimate of $288. Goldman maintains its long-held full-year 2024 earnings per share forecast of $241. The revised estimates are above the 2025 and 2026 strategist consensus estimates, the firm points out. Today’s price-to-earnings multiple of 22-times is in line with Goldman’s macro model of fair value. It forecasts the P/E ratio will be unchanged at year-end 2024 and lifted its index target to 6,000 from 5,600) and 12-month target to 6,300 from 6,000), implying 4% and 10% upside, respectively.