- High expectations heading into earnings season could make it harder for companies to impress investors, contributing to market volatility, according to Citi Research analysts.
- The analysts said companies will likely need “raises coupled with solid execution-driven beats” to wow investors.
- Artificial intelligence is also expected to be a major theme in earning results.
- Citi and Oppenheimer analysts raised their S&P 500 targets to 5,600 and 5,900, respectively.
Citi Research analysts cautioned that high expectations for earnings season could lead to market volatility, with companies needing to exceed estimates to impress investors. Earnings season begins this week with major banks like JPMorgan Chase, Wells Fargo, and Citigroup reporting results on Friday.
Citi analysts raised their year-end S&P 500 target to 5,600, while Oppenheimer set a target of 5,900. They expect artificial intelligence (AI) to remain a key theme in earnings reports.
