Credit Suisse double revises its S&P target
Wall Street dialed back its bullish S&P targets after 2018's end-of-year selloff. Now a few analysts are starting to ratchet their targets back up.
What's happening: Credit Suisse is the only major firm that's "double revised" so far — meaning the firm cut its initial price target late last year and revised it back up this month. Its most recent target reflects an 8% upside from the S&P's current level.
- The firm's target — calculated by multiplying the implied price-to-earnings ratio and the earnings per share estimate — could have been higher, but Credit Suisse also lowered its earnings estimates for S&P companies to $170 from $174 thanks to projected declines in the "energy sector and Apple." That target is among the lowest on the Wall Street.
- RBC has revised its S&P target just once. Last week, it said the S&P would end the year at 2,950 versus its initial 2900 estimate because the economy will "get back on track." It didn't change its $171 earnings estimate.
Between the lines: Credit Suisse is banking on a dovish Fed and a trade deal, rather than stellar earnings growth, to push the market higher.
Go deeper: Trying to read the S&P 500's tea leaves