Weekly Warm-up Thoughts from the Road

Morgan Stanley has raised its mid-2027 S&P 500 target to 8,300, emphasizing a broadening earnings recovery led by Industrials and Financials. While AI enthusiasm remains high, the report warns that rising 10-year yields above 4.50% could present a near-term risk to equity multiples.

Key Takeaways

• 1.Morgan Stanley raised its mid-2027 S&P 500 price target to 8,300, driven by a projected 16% annualized EPS growth through the forecast horizon.
• 2.The firm maintains high conviction in an earnings recovery and broadening theme, moving beyond just semiconductor/AI dominance into Industrials, Financials, and Discretionary Goods.
• 3.Interest rates remain a key headwind, with a focus on the 4.50% level for the 10-year yield as a threshold for potential equity multiple compression.

Table of Contents

• Thoughts from the Road
• 1Q Earnings Tracking
• Key Charts
• Scorecards
• Price Reaction
• Surprise
• Company Guidance & Revisions
• Sales
• EPS
• Margins
• 1Q Systematic Earnings Tracking (Full MS Coverage)
• Fresh Money Buy List
• Weekly Charts to Watch
• Disclosure Section

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