UBS is "relatively constructive" on the outlook for US equities in 2017, saying the benchmark S&P 500 index could rise to 2,325 over the next six months.
In its annual equity sector outlook research note published on Tuesday, the Swiss investment bank shared its view that the incoming Presidential regime would support prices.
"The team expects the Trump administration to adopt reflationary policies, increasing our conviction that earnings growth can accelerate given expected healthy consumer spending and improving energy sector fundamentals," read the note.
The analysts also commented on the favorable macroeconomic backdrop for consumers with the labor market approaching full employment and household balance sheets boosted by stock market highs and buoyant house sales. The bank also opined that anticipation of tax cuts and improving economic growth would offset concerns over increasing mortgage rates and gas prices.