JPMorgan raises its year-end S&P 500 target, but sees little upside left
Strong earnings and a resilient economy amid extreme policy uncertainty this year have uplifted JPMorgan's view on U.S. equities. Head of global markets strategy Dubravko Lakos-Bujas raised his year-end S & P 500 price target to 6,000 from 5,200. The strategist cited an "encouraging fundamental backdrop" that alleviated investors' concerns about tariffs' impact on corporate growth. He added that results such as Nvidia's confirmed that the AI theme and capital spending boom remains strong. "Absent major policy surprises, the path of least resistance is to new highs supported by Tech / AI led strong fundamentals, a steady bid from systematic strategies on improving volatility and momentum signals, and flows from active investors on dips," Lakos-Bujas wrote in a note to clients. .SPX 1Y mountain S & P 500 performance over the past year. Lakos-Bujas sees double-digit S & P 500 earnings expectations for 2026 lifting stocks in the second half of this year. He also highlighted the U.S. Court of International Trade's recent ruling against the Trump administration's tariffs as a potential tailwind for equities. "Going into 2H25, investors should begin to anchor equities to 2026 EPS growth potential ... which is significantly higher and should help support the relative valuation case for U.S. equities," Lakos-Bujas wrote. To be sure, Lakos-Bujas' target implies just 1% upside from Thursday's close of 5,939.30. "Elevated valuation could limit market upside, but it is rarely a sell catalyst on its own, especially if the U.S. continues to deliver stronger growth relative to DM peers and the AI story remains intact," the strategist said. Lakos-Bujas had slashed his original year-end target from 6,500 to 5,200 as investors navigated the throes of the April tariff scare. The S & P 500 at one point traded around 20% below its record high set in February. However, pauses to the steep duties announced by President Donald Trump helped the market recover. The benchmark sits around 3% below its all-time high. Three other strategists featured in the CNBC Market Strategist Survey also raised their forecasts this week: RBC's Lori Calvasina : to 5,730 from 5,550 Deutsche Bank's Binky Chadha : to 6,550 from 6,150 Barclays' Venu Krishna : to 6,050 from 5,900
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
an hour ago
- Business Insider
Nvidia (NVDA) Rival Huawei Is Struggling to Win Over Customers despite Export Rules
Nvidia (NVDA) CEO Jensen Huang has repeatedly warned about the growing competition from China's Huawei in the AI chip market. But so far, Huawei is struggling to convince China's biggest tech companies to adopt its chips, according to The Information. Indeed, although ByteDance, Alibaba (BABA), and Tencent (TCEHY) are testing Huawei's chips, they haven't placed any large orders yet. This is because the firms still prefer Nvidia's products, despite U.S. export restrictions. While Huawei has sold chips to state-owned companies and local governments, it has yet to make major gains with top private tech firms. Confident Investing Starts Here: One major reason why big Chinese tech firms are hesitant to make the switch is that their data centers and engineering teams are built around Nvidia's CUDA software. Moving to Huawei's ecosystem would require rewriting code, retraining staff, and losing access to tools that have been developed over the past 15 years. Testing has also revealed some problems: Huawei's latest AI chip, the Ascend 910C, often overheats, and its Compute Architecture for Neural Networks software lacks many of CUDA's features. Additionally, Chinese tech firms compete with Huawei in cloud computing, which makes them more cautious about adopting a rival's hardware. It also doesn't help that U.S. warnings about penalties for using Huawei's advanced AI chips have added further risk. In fact, after one such warning, a Chinese data center canceled a planned order of Huawei chips. Nevertheless, Huang continues to monitor Huawei's progress closely. What Is a Good Price for NVDA? Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 35 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $172.36 per share implies 21% upside potential.
an hour ago
How major US stock indexes fared Friday, 6/6/2025
Stocks rose on Wall Street following a better-than-expected report on the U.S. job market. The S&P 500 climbed 1% Friday, marking its second weekly gain in a row. The Dow Jones Industrial Average added 1%, and the Nasdaq composite rose 1.2%. U.S. employers slowed their hiring last month, but still added a solid 139,000 jobs amid uncertainty over President Donald Trump's trade wars. Lululemon Athletica sank after lowering its profit forecast for the full year. On Friday: The S&P 500 rose 61.06 points, or 1%, to 6,000.36. The Dow Jones Industrial Average rose 443.13 points, or 1%, to 42,762.87. The Nasdaq composite rose 231.50 points, or 1.2%, to 19,529.95. The Russell 2000 index of smaller companies rose 34.89 points, or 1.7%, to 2,132.25. For the week: The S&P 500 is up 88.67 points, or 1.5%. The Dow is up 492.80 points, or 1.2%. The Nasdaq is up 416.19 points, or 2.2%. The Russell 2000 is up 65.96 points, or 3.2%. For the year: The S&P 500 is up 118.73 points, or 2%. The Dow is up 218.65 points, or 0.5%. The Nasdaq is up 219.16 points, or 1.1%. The Russell 2000 is down 97.91 points, or 4.4%.
Yahoo
an hour ago
- Yahoo
Lemonade (LMND) Reports Q1 Earnings: What Key Metrics Have to Say
Lemonade (LMND) reported $151.2 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 27%. EPS of -$0.86 for the same period compares to -$0.67 a year ago. The reported revenue represents a surprise of +5.05% over the Zacks Consensus Estimate of $143.93 million. With the consensus EPS estimate being -$0.94, the EPS surprise was +8.51%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Lemonade performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: In force premium (end of period): $1.01 billion compared to the $999.35 million average estimate based on four analysts. Premium per Customer (end of period): $396 versus $394.15 estimated by four analysts on average. Customers (end of period): 2,545,496 versus the four-analyst average estimate of 2,535,658. Net loss ratio: 82% versus the four-analyst average estimate of 89%. Gross loss ratio: 78% compared to the 80.8% average estimate based on four analysts. Net investment income: $9.50 million versus the four-analyst average estimate of $8.45 million. The reported number represents a year-over-year change of +25%. Ceding commission income: $26.90 million versus $22.06 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +28.1% change. Commission income: $10.50 million versus the four-analyst average estimate of $8.02 million. The reported number represents a year-over-year change of +72.1%. Net earned premium: $104.30 million compared to the $105.18 million average estimate based on four analysts. The reported number represents a change of +23.6% year over year. View all Key Company Metrics for Lemonade here>>>Shares of Lemonade have returned +6.7% over the past month versus the Zacks S&P 500 composite's +11.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lemonade, Inc. (LMND) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
