UBS keeps S&P 500 end-2027 target at 8,900, says derating sets up strong returns
In short
The investment bank has reiterated its longer-term positive outlook for the broader equity market through late 2027. Analysts there argue that an ongoing market derating actually creates the necessary environment for robust subsequent gains. This stance reinforces their expectation that equity valuations will recover toward their designated benchmark level of 8,900. Consequently, the firm maintains that underlying conditions favor strong future performance.
Key points
- The investment bank expects valuation adjustments to ultimately benefit broader equity re…: The investment bank expects valuation adjustments to ultimately benefit broader equity returns over the coming years.
- Lower market multiples are viewed as a key setup for achieving the end-2027 target level.: Lower market multiples are viewed as a key setup for achieving the end-2027 target level.
- Investors tracking the index should note the firm remains confident in its 8,900 benchmar…: Investors tracking the index should note the firm remains confident in its 8,900 benchmark projection.