June 19, 2009 / 2:45 PM / 8 years ago

UPDATE 1-BMO sees economic upturn late this year

June 19 (Reuters) - BMO Capital Markets said it raised its earnings forecasts and one-year target prices for the S&P/TSX composite index .GSPTSE and the Standard & Poor’s 500 Index .SPX, saying “a new bull market is under way, based on an economic upturn beginning late this year”.

The brokerage said it does not expect depression psychology to overcome the market again, and thus does not foresee a retesting of the March lows.

“The rebound off the March lows represented the best take-off of any postwar bull market, which now appears to be leading to a period of correction/consolidation,” BMO analyst Ben Joyce wrote in a note to clients.

Higher-than-expected commodity prices, notably for crude oil, as well as the faster-than-expected revival of capital markets activity prompted the analyst to lift his earnings forecast for S&P/TSX.

Joyce raised the S&P/TSX price target by 250 points to 11,000, while increasing the S&P 500 target by 25 points to 1,000.

The analyst also raised his 2009 operating earnings forecast for the S&P/TSX by $20 to $560, and 2010 forecast by $30 to $700.

For the S&P 500, the analyst lifted his 2009 and 2010 operating earnings forecast by $1 each to $53 and $66, respectively. (Reporting by Krishna Chaithanya in Bangalore; Editing by Himani Sarkar)

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