Citi Raises S&P 500 PT To 2000; ‘Attacks’ CAPE

US equities have risen faster than most people expected so far this year, and while some people are concerned that this could be the lead up to a market correction, Citi analyst Tobias M Levkovich argues that the gains are supported stronger earnings, pushing his S&P 500 (INDEXSP:.INX) 2014 year-end estimate from 1975 to 2000 based on $118.20 EPS (up from the previous $117.75 estimate) and setting a mid-2015 estimate of 2050.

S&P 500 earnings beat Citi estimates despite difficult first quarter

“Earnings have beaten estimates, at least in 1Q14 where even a weather-induced GDP decline did not end up crushing the bottom line,” writes Levkovich. “With share prices higher and better EPS, one has to rethink the outlook especially...