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Pro Analysis

Strategist Stovall raises year-end market forecast as Street tries to keep up with rally


Traders work on the floor of the New York Stock Exchange (NYSE) in New York.
Michael Nagle | Bloomberg | Getty Images
Traders work on the floor of the New York Stock Exchange (NYSE) in New York.

CFRA's chief investment strategist, Sam Stovall, on Thursday told clients the market is likely to continue its uptrend this year, leading him to increase his year-end price target for the S&P 500 to 2,460, implying a gain of more than 3 percent from here.

"This new target incorporates CFRA equity analysts' bottom-up 12-month target prices for stocks in the S&P 500, reflecting their 2017 views on valuation after the just-completed Q4 [fourth quarter] 2016 EPS reporting period, combined with a macro, top-down forecast," Stovall wrote in a research note.

The increase comes a day after Savita Subramanian, equity strategist at Bank of America Merrill Lynch, boosted her year-end price target to 2,450 from 2,300, implying a gain of about 3 percent from here.

Wall Street strategists are raising their targets in response to a rally that's already met their consensus target for the year, which stands at 2,380 or about where the S&P closed on Thursday.