Canaccord Lifts 2013 S&P 500 Target to 1,760, Warns of 'Temporary Correction' Ahead of Move Higher

Canaccord Genuity strategist Tony Dwyer earlier boosted his 2013 target for the S&P 500 from 1,650 to 1,760. The analyst cited strong economic and company profit trends, fewer indications for systemic risk and policy valuation constraints which continue to come down. Dwyer called his previously-forecast 15x PE estimate for S&P 500 earnings "overly conservative." The analyst now sees an S&P 500 multiple of 16x on $110 in operating earnings per share. Dwyer did, however, warn of a temporary correction ahead of hitting his new target. With the S&P 500 up around 9 points to 1,561 at last check, Dwyer's new target represents potential upside of nearly 13 percent.