Deutsche Bank: Trump tax cut to send S&P to 2,400 in 2017

Horse racing in Monmouth Park in Monmouth Junction, New Jersey.
Getty Images

Deutsche Bank joined a growing list of Wall Street firms predicting a rally in the stock market due to the potential for lower corporate taxes under President-elect Donald Trump.

The investment firm advised clients to buy those sectors most likely to benefit from changes in tax laws.

"To maximize the stimulus from a corporate tax rate cut we believe it must be: significant, speedy and simple. If the corp tax rate cut is to be applied to full 2017, as we expect, then passing the legislation ASAP provides the most bang for the forgone 2017 tax revenue buck," equity strategist David Bianco wrote in a note to clients Wednesday.

The strategist said that if corporate taxes are lowered within the first 100 days of Trump's inauguration, the S&P 500 could rally 7 percent, to 2,400.