What does 2017 look like for the S&P?

Below is a summary of what Wall Street’s top strategists are telling their clients.

Bank of America, Savita Subramanian — Target: 2,300; EPS: $129
“…2017 could be anything but normal. We see fat tails and a binary set of outcomes. Against the backdrop of elevated valuations, slow growth and limited scope for credit expansion, our target and the recent rally are reliant on policymakers’ ability to deliver growth next year. Trump’s comments on trade and GOP comments on deficits/spending could drive big market swings in the coming months. Risk-reward will be more important than absolute targets.”

Citi, Tobias Levkovich — Target: 2,325; EPS: $129
“Trumped up could trickle down (to EPS)…Tax cuts could be quite stimulative to S&P 500 EPS. If one assumes a 20% statutory tax rate with no deductions versus a current effective tax rate running at near 27%, that might add as much as $12 of 2017 EPS to Citi’s current estimate of $129."

Goldman Sachs, David Kostin — Target: 2,300; EPS: $123
“In 2017, we expect the stock market will be animated by competing views of whether economic policies and actions of President Trump and a Republican Congress instill hope or fear…’Hope’ will dominate through 1Q 2017 as S&P 500 climbs by 9% to 2400…’Fear’ is likely to pervade during 2H and S&P 500 will end 2017 at 2300, roughly 5% above the current level.”

JPMorgan, Dubravko Lakos-Bujas — Target: 2,300 (by early 2017)
“Expectations of decreased regulation, favorable tax reform, increased fiscal spending, and less congressional gridlock should drive stronger revenue growth and higher net income margins. Further, the removal of election uncertainty and some form of cash repatriation should result in increased investment activity."

Deutsche Bank, David Bianco — Target: 2,350; EPS: $130

Barclays, Jonathan Glionna — Target: 2,400; EPS: $127

Credit Suisse, Lori Calvasina — Target: 2,300; EPS: $123.90

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