Citi analysts recommend investors seize potential opportunities in early 2025 as the S&P 500 may experience a pullback. They cite robust fundamentals and long-term growth drivers that could lead to double-digit earnings growth for S&P 500 companies. The valuation and growth expectations set a high benchmark for the upcoming year, yet Citi remains optimistic about the prospects of S&P 500 companies in a stable macroeconomic environment.
Citi has set a target of 6,500 points for the S&P 500 by the end of 2025, with an expected earnings per share of $270. However, they acknowledge potential risks such as the Federal Reserve reducing its accommodative measures and speculative asset bubbles.
