Goldman Sachs raised the S&P 500 index's target for the end of the year to 1060 from 940 Monday, but said the risk of "double-dip" recession remains significant.
Goldman Sachs made the move to reflect potential price return of about 13 percent from the current levels, Reuters reported.
It also raised the S&P 500 operating earnings view to $52 from $40 for this year.
Operating earnings view for next year was also raised to $75 from $63.
Goldman's current economic view is for below-trend growth through 2010, and it believes the risk of a "double-dip" recession is still significant.
Asian markets rallied, with the Hang Seng index closing more than 3.7 percent up, while European stock indexes were also up, with banks dominating the upturn.
Stock markets in the US and Europe are likely to see a significant rally if indexes manage to rise further from current levels, technical analyst Clem Chambers, CEO of ADVFN, also said Monday.
Data also provided by 
