Morgan Stanley analyst raises S&P 500 price target to 6500 by 2025

Morgan Stanley's Mike Wilson, known for predicting the 2022 stock market decline, has shifted his outlook. He now forecasts the S&P 500 will rise to 6,500 in 2025, with a bullish scenario suggesting it could reach 7,400. This marks a significant change from Wilson's previous bearish stance, where he anticipated further market losses in 2023. The new report highlights strong fundamentals and a positive macro outlook, projecting 13% earnings growth next year. The report also notes a slight decline in the market's earnings multiple, while Brent Crude oil is expected to trade at $66 per barrel. The yield on the 10-year Treasury bond is projected to decrease to 3.55%.