November 23, 2009 / 4:49 PM / in 8 years

UPDATE 1-BMO raises S&P 500 target, estimates

Nov 23 (Reuters) - BMO Capital Markets raised its one-year target on Standard & Poor’s 500 index .SPX by 25 points to 1,175 points and said it expects the bull market to continue over the next year, assuming a moderate global growth.

Following a 6 percent correction, North American stocks have recovered close to the highs reached in mid-October, the brokerage said.

“Nevertheless, stocks are well down from the peak of the previous cycle and remain attractively valued relative to fixed income alternatives,” BMO analyst Ben Joyce said in a note to clients.

The analyst raised his forecast for S&P 500 operating earnings 86 cents to $58.11 for 2009, and increased 2010 estimates by $1 to $71.

“A renewed and sharp pace of depreciation in the U.S. dollar since March is providing a tailwind to the profit outlook for U.S. multinationals,” Joyce said.

The analyst maintained his 2009 operating earnings forecast for S&P/TSX index .GSPTSE at $600 and said earnings have so far come in slightly weaker than expected.

Joyce kept his one-year target on S&P/TSX index at 12,500.

The Standard & Poor’s 500 index was up 1.6 percent at 1108.97, while the S&P/TSX was up 1 percent at 11693.16 late morning trade Monday. (Reporting by Divya Sharma in Bangalore; Editing by Gopakumar Warrier) ((divya.sharma@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: divya.sharma.reuters.com@reuters.net))

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