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2025-07-29 00:55:11
[Morgan Stanley: S&P 500 Index Targets 7,200 Points by Mid-Next Year] Morgan Stanley strategist Michael Wilson believes that with the support of blue chip earnings and positive macro trends, the S&P 500 Index has a chance to rise to 7,200 points by mid-next year, which is 12.5% higher than the current level. Wilson said in a securities analysis report that the S&P 500 Index of 7,200 points is a more optimistic forecast, mainly because the total earnings per share of the S&P 500 index components are expected to reach 319 yuan, and the expected price-earnings ratio is set at 22.5 times, which is why the S&P 500 Index is expected to reach a higher target. Wilson believes that the quarterly results released by the S&P 500 index components show that corporate earnings growth has a stable foundation, and the average increase is expected to be in the middle of 10% to 20%. Wilson described the current stock market cycle as a non-traditional cycle, mainly supported by factors such as positive operating leverage ratios, artificial intelligence applications, a weak US dollar exchange rate, tax savings, good income growth, continued demand growth, and the Federal Reserve's interest rate cuts. He is confident that the S&P 500 will tend to meet the above optimistic forecast and recommends buying high-quality stocks at low prices. As for individual industries, Wilson maintains his original view and believes that industrial stocks will be one of the biggest beneficiaries of this market rally.
