RBC introduces a 5,000 year-end 2024 target for S&P 500

investing.com:

RBC Capital Markets has introduced its year-end 2024 S&P 500 price target of 5,000 as the new year approaches.

Despite the November rally potentially bringing forward some of the gains expected in 2024, RBC remains optimistic about the U.S. equity market returns in the coming year.

“Our valuation and sentiment work are sending constructive signals, partially offset by headwinds from a sluggish economy and uncertainty around the 2024 Presidential election,” analysts said.

While the attractiveness of bonds may temper U.S. equity market returns, analysts argue that it still does not necessarily derail them.

“We think we are still in the early days of the post-COVID era of investing in which the new rules of thumb are being established. In terms of positioning, we think the tug of war between Growth and Value may last a while longer, and that Small Caps look intriguing.”

RBC’s bear case for the S&P 500 in 2024 sees the index closing the year at 4,500 while the more constructive model sees the S&P 500 at 5,300.

For this year, analysts see the S&P 500 potentially ending the year at 4,700 if “our 2023 EPS forecast of $223 proves accurate.”