Societe Generale is raising its 2024 S & P 500 target thanks to the enthusiasm surrounding the contribution artificial intelligence will make to corporate profits.
The S & P 500 closed Wednesday at 5,224.62.
"We upgrade our S & P 500 target on rational optimism," Manish Kabra, head of U.S. equity strategy at the bank, wrote in a Thursday note.
To be sure, Kabra raised his S & P 500 earnings outlook to 18% in 2024 from 15% previously, but anticipates a slowdown in earnings growth expectations in the second half of the year.
The higher S & P 500 target is "on the back of the artificial intelligence boom in 2024," Kabra wrote.
Persons:
Manish Kabra, Kabra, — CNBC's Michael Bloom
Organizations:
Generale, CNBC Market, Survey, Bank of America, UBS, Nasdaq, Federal Reserve