Goldman Sachs’ strategist Abbey Joseph Cohen has boosted her targets on both the S&P 500 Index and the DJIA for 2007. She raised the S&P target from 1550 to 1600, versus 1,504-ish today. Her DJIA target was hiked from 13,500 to 14,000, versus 13,270-ish today.
Ms. Cohen is also looking for continued mid to high-single digit earnings growth for 2007 to continue through 2008. This is a moderation of gains, but based on continued corporate gains and the duration of the Federal Reserve and strength of the international economies.
After all the mergers and earnings running up the market day after day you have to wonder if this marks an opportunity for profit taking. This feels like the first day out of many where the red "39 points above prior high" ticker hasn’t been lit up on CNBC and all over the Internet.
We don’t mean this as a total slam against Goldman nor against Ms. Cohen. She’s smart and more influential than most, but after more than a 1,000 point rally in 2 montsh in the DJIA you just can’t help but think the call is late. The market may very well go higher, but that doesn’t mean there won’t be days (or even weeks) of profit taking here and there.
Jon C. Ogg
May 8, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in any of the companies he covers.
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