UBS has revised its year-end 2025 target for the S&P 500, increasing it to 6,400 from the previous forecast of 6,000. The bank's strategists anticipate a 9.2% upside over the next 15 months, driven by earnings growth and improving economic conditions.

Projected Earnings and GDP Growth

The projected earnings per share figures for the upcoming years are $240 for 2024, $257 for 2025, and $275 for 2026. UBS economists forecast nominal GDP growth of 3.7% in 2025, with real GDP growth expected to be 1.6%.

Key Factors Influencing S&P 500 Performance

The bank's strategists have identified several key factors that are likely to influence the performance of the S&P 500:

• Revenue growth of 4.8% in 2025
• Robust performance of the TECH+ sector

Profit Margins and Price-to-Earnings Multiples

UBS anticipates stable profit margins and a slight increase in price-to-earnings multiples.

Potential Downside Risks

UBS has highlighted potential downside risks, such as a resurgence in inflation, that could impact its projections.

Overall Outlook

Overall, UBS's revised targets reflect a cautiously optimistic outlook, supported by anticipated earnings growth and favorable economic conditions.