The broker wrap: brokers raise their ASX targets

Founder of FNArena
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Changes to stockbroker ratings in the past week

The global macro news flow has surprised to the upside in the first weeks of 2012 and Goldman Sachs has responded by lifting its global growth forecasts. At the same time, the broker notes that investor sentiment is improving and additional risk is being added to portfolios.

ASX estimates are up!

This has forced a review of prospective market multiples for the current year. As a result, Goldman Sachs has lifted its forecasts for the S&P/ASX 200 index to 4,340 for the end of June and 4,600 for the end of December, up 5.9% and 2.2%, respectively from previous estimates. Looking at 2013, Goldman Sachs has also lifted its forecasts, but only modestly, with June-end and December-end estimates up by 0.5% each to 4,780 and 5,025, respectively.

On Monday, market strategists at Deutsche Bank, who remain amongst the more bullish in the market, reiterated their targets of 4,350 by mid-year and 4,700 by December – that's a 10.7% gain from this morning's level.

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