Courtesy of Tyler Durden
Even Goldman’s clients are increasingly challenging the firm’s unrelenting bullish outlook: David Kostin says: “Our view that S&P 500 earnings will approach prior peak levels in 2011 represents a key argument supporting our bullish view on US equities. However, it remains the single most contentious point in our recent meetings with both the micro and macro investors. Separately, 10% of S&P 500 sales originate in Europe. Stocks with high revenue exposure face headwinds and should lag the broader market.”
And here is what the world looks like through 3D, rose-colored glasses:
Our top-down EPS forecasts of $76 and $90 for 2010 and 2011 reflect +33% and +20% growth, respectively. Our pre-provision and write-down EPS forecasts are $81 for 2010 and $91 for 2011. Bottom-up consensus forecasts a 39% increase in 2010 to $79, and a 20% increase in 2011 to $95.
Surely Europe filing Ch.11 will only raise the 2011 EPS forecast.