With one of the most bizarre, volatile years on record almost behind us, Goldman Sachs just lifted its target on the S&P 500 to 3,700 from 3,600 for 2020.
The firm is also targeting 4,300 by the close of 2021, and 4,600 by the end of 2022.
In short, they’re very much bullish.
That’s thanks in part to Pfizer’s vaccine news, and speculation it could receive emergency use authorization by the end of January 2021. Sufficient doses should be available for the U.S. population during the first half of the New Year, they added.
“A vaccine is a more important development for the economy and markets than the prospective policies of a Biden presidency. The much-awaited results from Pfizer that its COVID-19 vaccine has an efficacy rate greater than 90% is a positive event that will allow society to gradually normalize during 2021,” they said, as quoted by Yahoo Finance.
In addition, according to MarketWatch, “They increased earnings estimates, mostly reflecting the better-than-expected results for the third quarter. They also are expecting better growth in the U.S. next year than the market does, at 5.3% versus the consensus forecast of 3.8%.”
However, Goldman isn’t the one bullish on upside.
JP Morgan also forecast 3,600 on the S&P 500 for 2020, and 4,500 for 2021.
“The equity market is facing one of the best backdrops for sustained gains in years. After a prolonged period of elevated risks (global trade war, COVID-19 pandemic, U.S. election uncertainty, etc.), the outlook is significantly clearing up, especially with news of a highly effective COVID-19 vaccine,” JPMorgan added.
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