“We expect earnings per share growth to decelerate from 21.5 percent in 2018 to 7.7 percent in 2019, largely the result of fading tax impacts, and is in-line with historical averages,” he wrote.
This is not the first time Credit Suisse has published encouraging equity analysis in recent months.
Golub’s team chided investors earlier this year for worrying too much about trade tensions, the specter of inflation and peak earnings, writing that fear could prevent many from realizing healthy returns.
At the time, Credit Suisse told clients “while each issue has merit, we believe investors are under-estimating the market’s potential upside, and over-estimating risks.”
The stock market proved Golub right, with the S&P 500 rebounding to a record last week, closing at 2,901.52 points on Friday.