HOT NEWS: JPMorgan Raises Year End Target on the S&P 500 to 1,160
Published: November 20, 2009 - StreetInsider.com -
J.P. Morgan Securities raised its year-end target on the Standard & Poor's 500
index to 1160 from 1100, to reflect its higher 2010 earnings expectations.
The brokerage also said that improvement in payrolls, stabilization in home
prices, and greater M&A in 2009 versus 2008 could act as potential catalysts
and push the index higher.
"We believe industrials, technology, and energy are likely to see the greatest
upside into year-end, given their greater GDP sensitivity and current low
relative valuations, the brokerage said in a note to clients.
J P Morgan raised its 2010 earnings view to $80 from $76 for the S&P 500,
saying the 2009 higher earnings base was "mostly sustainable."
Continued low interest rates and expected GDP expansion should enable companies
to generate substantial operating leverage, the brokerage said.
