Bears Turning Bulls

Wilson turns bullish

Mike Wilson turns more bullish with modest upside to his base case (S&P Target = 5,400) and balanced risk/reward on the upside and downside. 

“In the base case, we forecast a 19x P/E multiple on 12-month forward EPS (June 2026) of US$283, which equates to a 5,400 forward 12-month price target. Our 2024 and 2025 earnings growth forecasts (8% and 13%, respectively) assume healthy, mid-single-digit top-line growth in addition to margin expansion in both years. Modest valuation compression (from ~20x to ~19x in the base case) as earnings adjust higher is typical in a mid-to-late-cycle backdrop" (Morgan Stanley)