NEW YORK (Reuters) – Morgan Stanley (NYSE:) has increased its 12-month base case tag target on the to 6,500, the company’s equity strategist Michael Wilson and various strategists wrote in a expose on Monday.

The benchmark index became final at 5,893.

In accordance to the expose, the company expects the sizzling broadening in U.S. earnings dispute to proceed in 2025 because the Federal Reserve cuts curiosity charges into next 365 days and as industry cycle indicators toughen extra.

“A seemingly upward push in corporate animal spirits publish the election (as we noticed following the 2016 election) would possibly possibly catalyze a more balanced earnings profile all over the market in 2025,” the strategists added.

Republican Donald Trump this month received a second time duration as U.S. president. He became elected U.S. president for the first time in 2016.

The company remains bullish on “quality cyclicals,” noting that financials dwell its “liked chubby” following an toughen in early October.