{"id":528704,"date":"2010-04-15T13:21:00","date_gmt":"2010-04-15T17:21:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:423683"},"modified":"2010-04-15T13:21:00","modified_gmt":"2010-04-15T17:21:00","slug":"merrill-strategist-raises-sp-500-target-to-1350","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/528704","title":{"rendered":"Merrill strategist raises S&P 500 target to 1350"},"content":{"rendered":"

Think equity markets have come too far to fast? Think again, says David Bianco, the head of U.S. equity strategy and Bank of America Merrill Lynch. <\/p>\n

In a note to clients Thursday, Mr. Bianco raised his 12-month target for the S&P 500 to 1350, after revising his earnings forecast higher.  <\/p>\n

He raised his 2010 earnings expectation to US$80, from US$75 and his 2011 target to US$88 from US$85. In 2012, he expects profits to hit $94, up from $90 previously.  <\/p>\n

"The most significant part of our revised S&P 500 EPS outlook is the US$3 boost to 2011 EPS," he said in a note to clients. <\/span><\/font><\/font> <\/p>\n

"This boost reflects higher S&P 500 top-line growth with more margin expansion from lower credit costs and more operating leverage than we previously assumed." <\/span><\/font><\/font><\/p>\n

Mr. Bianco said the S&P 500 will reach 1300 late in 2010, but added that his bullish stance rests upon two key outlooks: <\/span><\/font><\/font><\/p>\n

First, the S&P EPS recovery has to outpace the US GDP recovery. Second, the Fed stays pat on interest rates until early 2011 and long-term treasury yields stay under 5% through 2011. <\/span><\/font><\/font><\/p>\n

First quarter earnings will validate his first key outlook, he said, while the next several months should improve the clarity on outlook two. <\/span><\/font><\/font><\/p>\n

"If 10yr treasury yields stay under 4% this summer then the market should grind higher led by mega-cap stocks," he wrote. <\/span><\/font><\/font><\/p>\n

David Pett <\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Think equity markets have come too far to fast? Think again, says David Bianco, the head of U.S. equity strategy and Bank of America Merrill Lynch. In a note to clients Thursday, Mr. Bianco raised his 12-month target for the S&P 500 to 1350, after revising his earnings forecast higher.  He raised his 2010 earnings […]<\/p>\n","protected":false},"author":4060,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-528704","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/528704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4060"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=528704"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/528704\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=528704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=528704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=528704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}