SPX could reach 8100 based on 20x multiple on 2027 EPS, Michael Kantro estimates

SPX could reach 8100 based on 20x multiple on 2027 EPS, Michael Kantro estimates
SPX could reach 8100 on 2027 EPS

Michael Kantro predicts that applying a 20x price-to-earnings ratio to 2027 estimated EPS of $405 results in a year-end SPX target of 8100.

He adds that potential Federal Reserve rate hikes could add or subtract 1 P/E point, which would affect the S&P 500 index by roughly 400 points. Kantro states he remains in the “holder for longer” camp.

Earlier this year, Kantro attributed a roughly 10% lower market P/E ratio to expectations for Federal Reserve policy and higher debt costs for the Mag 7 companies, according to a prior note. He also recently commented that the reopening of the Strait of Hormuz could decrease the likelihood of a U.S. Fed rate increase, as seen in his earlier analysis. These views provide further context for his latest projections on S&P 500 pricing.

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