UBS Global Wealth Management raised its S&P 500 year-end target to 8100 and its mid-2027 target to 8400, while also raising its EPS estimates for 2026 and 2027 to $350 and $400, respectively.
UBS Global Wealth Management raised its year-end target for the S&P 500 Index from 7900 to 8100, indicating potential upside of approximately 6% from current levels. It also raised its mid-2027 target to 8400, maintaining a broadly bullish outlook. The revised figures imply upside from Thursday's close of 7641.
EPS estimates were also revised upward, with the 2026 forecast raised from $335 to $350 and the 2027 forecast from $375 to $400. This implies projected annual earnings growth of 25% and 14%, respectively.
The strategist team said stronger-than-expected performance by the semiconductor, technology hardware and energy sectors was a major factor. UBS said it continues to view US equities as attractive.
UBS presented both bullish and bearish scenarios, seeing index performance as potentially dependent on oil prices, a resurgence of inflationary pressures and the profitability of AI capital spending. Under its bearish scenario, the index could fall to 5500 by June 2027, while under its bullish scenario it could rise to 9500.