NEW YORK (Reuters) – Morgan Stanley (NYSE:) has increased its 12-month dejected case value goal on the to 6,500, the company’s equity strategist Michael Wilson and other strategists wrote in a demonstrate on Monday.

The benchmark index modified into closing at 5,893.

Per the demonstrate, the company expects the most modern broadening in U.S. earnings progress to proceed in 2025 as the Federal Reserve cuts hobby charges into subsequent year and as industry cycle indicators toughen extra.

“A doable upward thrust in corporate animal spirits put up the election (as we saw following the 2016 election) could presumably maybe catalyze a extra balanced earnings profile across the market in 2025,” the strategists added.

Republican Donald Trump this month gained a 2nd period of time as U.S. president. He modified into elected U.S. president for the necessary time in 2016.

The company stays bullish on “quality cyclicals,” noting that financials dwell its “appreciated chubby” following an upgrade in early October.