Citigroup Raises S&P 500 Target for 2023, Boosted by King Dollar's Decline

Citigroup analysts have raised their S&P 500 target for the end of 2023 to 4,600 points, citing increased chances of a "soft landing" for the US economy. The revision reflects growing conviction in out-year earnings growth acceleration. The S&P 500 has rallied this year, reaching its highest closing value since April 2022. Citigroup also raised its mid-2024 target for the index to 5,000 points. The analysts acknowledged that these new targets may be seen as chasing the year-to-date move in the S&P 500 but believe they better reflect the evolving macro and fundamental backdrop. They anticipate stronger earnings growth in 2024 and suggest buying pullbacks to position for an earnings growth acceleration call.