One Bull’s Big Stock Market Call

Despite ending the week with three consecutive down days, the S&P 500 appears to be on track to hit 1,700 this year, Barry Bannister of Stifel Nicolaus said Friday.

"We should get there by second or third quarter. We're not going to make it on diapers and food stocks," he said. "We're going to need some economic growth here."

The Dow Jones Industrial Average rose 8.60 points, or 0.06 percent, to close at 15303.10. Procter & Gamble led the blue chips as A.G. Lafley returned as CEO. The S&P 500 closed at 1,649.60.

(Read More: S&P 500 Closes Lower for a Third Session; Dow Ekes Out Gain)

Barrister previously increased his bullish call for the S&P 500 to 1,700 in April, up from 1,600 in December.

On CNBC's "Fast Money," Bannister said that investors would do well to follow "a pro-cyclical strategy" that includes exposure to financials, technology, materials and industrials.

"We need some pro-growth initiatives overseas, though, if we're going to get the latter few to work," he added.

Bannister brushed off concerns about the Federal Reserve's tapering of its quantitative easing policy.

"QE tends to function more through the P/E ratio than through the earnings," he said. "Even if they taper the QE at the rate of $15 to $20 billion a quarter and net redeems bonds by the end of 2014, it's still $600 billion. That's the size of QE2.

"So, we have a lot of policy support for this market, and what we really need is greater earnings confidence."

(Read More: How the S&P Gets to 1,700: Barry Bannister)

Bannister noted that there had been "a huge rotation" out of cyclical stocks into defensive plays from about March 15 through April 23, triggered by the financial crisis in Cyprus.

"It's rotating back into the cyclicals, and some of defensives have given some ground back, so, yeah, I'd expect that to continue," he said.

Trader disclosure: On May 24, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MJNA; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long QCOM; Steve Grasso is long S; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is long FL; Karen Finerman is long SPY; Karen Finerman is long MDY PUTS; Josh Brown is long AAPL; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long SBUX.