Citigroup stated that there is more upside potential in the S&P 500 index in the second half of the year, with a focus on sectors such as real estate and finance.
Zhongtong Finance learned that Citigroup believes that as trading begins in the second half of 2024, there is more upside potential in the S&P 500 index. Prior to Citigroup making the above prediction, the benchmark index had risen 14.5% in the first half of this year. Citigroup gave several target level forecasts for the S&P 500 index in 2024 (5600 points), mid-2025 (5700 points), and the end of 2025 (5800 points). In addition, Citigroup also identified the industries that it holds, reduces holdings, and takes a neutral position in.
In a research report published on Monday, Citigroup said: "We expect the S&P 500 index to further rise in the second half of 2024. We expect the global economic growth rate to be 2.3% this year, which is slower than last year's 2.7%. Despite this, our forecasts have risen by nearly 0.5% since the beginning of the year, because the first half of the year’s data was better than expected, and the risks our forecasts face seem to be biased towards the upside."
Below is Citigroup's target forecast for the S&P 500 index (compared to the latest Tuesday's closing price change), as well as the ratings of the 11 sectors in the S&P 500:
S&P 500 index target at the end of 2024
Benchmark forecast: 5600 points (up 1.7% from the latest closing price)
Bull market scenario: 6100 points (up 10.7% from the latest closing price)
Bear market scenario: 4300 points (down 21.9% from the latest closing price)
S&P 500 index target in mid-2025
Benchmark forecast: 5700 points (up 3.5% from the latest closing price)
Bull market scenario: 6200 points (up 12.5% from the latest closing price)
Bear market scenario: 4700 points (down 14.7% from the latest closing price)
S&P 500 index target at the end of 2025
Benchmark forecast: 5800 points (up 5.3% from the latest closing price)
Bull market scenario: 6400 points (up 16.2% from the latest closing price)
Bear market scenario: 4700 points (down 14.7% from the latest closing price)
Suggested increase in global sectors:
Real estate (XLRE.US)
Finance (XLF.US)
Non-essential consumer goods (XLY.US)
Performance consistent with the large cap sector.
Communication Services (XLC.US).
Industrial sector (XLI.US).
Technology sector (XLK.US).
Consumer Staples (XLP.US).
Energy sector (XLE.US).
Utilities (XLU.US).
Recommend shareholding in global sectors.
Materials sector (XLB.US).
Medical care sector (XLV.US).