Morgan Stanley Sees New Market Cycle, Reaffirms S&P 500 7,800 Target
Morgan Stanley's Chief US Equity Strategist Mike Wilson forecasts a new economic and earnings cycle, citing recovery in previously recession-hit sectors and reaffirming a 7,800 year-end S&P 500 target. The firm maintained an Overweight rating on Amazon with a $300 price target, highlighting roughly 20% forward EPS growth.
1. New Economic and Earnings Cycle Forecast
Mike Wilson, Chief US Equity Strategist and CIO at Morgan Stanley, said previously recession-hit segments are starting to recover, broadening market participation. He reaffirmed a 7,800 year-end S&P 500 target, emphasizing a transition into a fresh economic and earnings cycle.
2. Top GenAI Pick and Amazon Rating
The Equity Research team maintained an Overweight rating on Amazon with a $300 price target, citing approximately 30% AWS growth potential supported by strong demand and data center investments. Analysts projected around 20% forward GAAP EPS growth and highlighted AI-driven retail initiatives as key upside catalysts.