UBS Global Wealth Management raised its year-end target for the S&P 500 index (.SPX) to 8,100, citing a stronger earnings outlook and confidence in sustained profit growth through next year.
The wealth management arm of UBS Bank (UBSG.S), UBS Global Wealth Management is the newest addition to a growing chorus of global research firms forecasting the S&P 500 will be above 8,000 by the end of 2026.
The new target implies a roughly 6% upside from Thursday's close of 7,641.16 points.
UBS, which maintained its "attractive" view on U.S. equities, said the "three pillars" supporting the bull market — resilient economic growth, supportive monetary policy and AI adoption — were firmly in place.
"While AI-related companies remain key contributors, recent performance has also been supported by improving conditions in more cyclical parts of the economy," it said in a note dated Thursday.
The wealth management unit raised its forecasts for S&P 500 earnings per share to $350 in 2026 and $400 in 2027, from its previous estimates of $335 and $375, respectively.
UBS also raised its 2027 mid-year index target to 8,400 from 8,200.
