Jefferies lifted its year-end target for the S&P 500 index to 6,600, citing robust corporate earnings, easing concerns about the health of the U.S. economy.
Previously, the brokerage had set its year-end target at 5,600, making it the sole firm projecting the benchmark index below the 6,000 mark.
UBS, Citigroup, and HSBC were among the leading brokerages that boosted their index targets earlier this month amid improving market sentiment.
Artificial intelligence-driven names and the "Magnificent Seven" led the market gains, while notable strength in financials suggests a resilient macroeconomic backdrop, Jefferies analyst Desh Peramunetilleke said in a note on Sunday.
Following a sharp downturn in April amid President Donald Trump's "Liberation Day" tariff announcement, U.S. equities have regained ground, driven by resilient earnings buoyed by the AI boom.
Jefferies also forecast S&P 500 earnings per share will climb nearly 10% this year to $267, underscoring expectations for solid profit growth.
Meanwhile, the brokerage also reaffirmed its forecast for three more interest rate cuts by the U.S. Federal Reserve this year, beginning September, citing Chair Jerome Powell's more cautious tone at Jackson Hole on Friday amid rising labor market concerns.