UBS on the US equity index, say that Q2 of this year will mark the bottom for corporate profits, earnings to now head higher.

  • We expect profits to be down 40% in 2Q. However, as we expected, many management teams continued to emphasize that the outlook remains uncertain and is highly contingent on progress containing the coronavirus and additional government stimulus
  • Our S&P 500 EPS estimates of USD 122 (-26%) and USD 156 (+28%) for 2020 and 2021, respectively, remain unchanged. Overall, results should help sustain the rally we have seen over the last four months.
  • Our June 2021 S&P 500 price target remains 3,300

Agree/disagree? Comments welcome!