Goldman Sachs issued a bullish note on the S&P 500, raising its target for the index to 1060 from 940 by year's end.
Art Cashin, director of floor operations at UBS Financial Services, offered CNBC his take on the Goldman note and the stock markets.
"Certainly, they've got the shorts a little panicky," Cashin said.
But does he fully accept Goldman's outlook? "Not quite yet," he cautioned.
"If we can break out to new highs, you might get a whole new leg up in this."
"But I haven't seen the changes in the economy...that I think would justify a 15 percent move up."
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He remains skeptical on the optimism over stronger earnings reported, citing the cost-cutting, rather than revenue increases, driving much of the season.
"Even if you can take your costs down to zero, you've got to stop somewhere."
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Cashin also addressed what traders are expecting when Fed Chairman Ben Bernanke speaks this week.
"People fear if you bungle the [monetary and interest rate] exit strategy, inflation could explode."
For more of Cashin's comments on Bernanke, watch the full interview (above).
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Disclosure information was not available for Cashin or his company.