Analysts at BMO Capital Markets said on Friday that they were revising their year-end 2025 target for the S&P 500 to 7,000 from 6,700. BMO cites the recent Federal Reserve rate cuts and strong earnings from numerous companies within the index. At market close on Friday, the S&P 500 sat at 6,643.70, up 2% in the past month.

“With the Fed cutting interest rates, earnings solidifying, AI not ANYWHERE near bubble territory and stock market performance broadening out, the believability and [comfort] of US stocks is back in full swing, in our view,” wrote BMO chief investment strategist Brian Belski in a research note announcing the target revision. “In fact, 2025 could very well be the table setter for a 1995-1996 redux of Goldilocks.”

Also Read: Starbucks Closing Stores in $1B Restructuring as SBUX Stock Slides

BMO’s forecast for the S&P 500 falls just shy of the projection that Goldman Sachs recently gave. Goldman Sachs wrote in a note to clients estimating that the index would reach 6,800 by the end of 2025. However, the bank remains bullish, citing that the index could reach between 7,000 and 7,200 in the next six to 12 months. That would be an uptick and return on investment (ROI) of approximately 4.6% to 7.6%.

The quick market recovery from April has soothed investors, making them take entry positions. Several analysts had doubted that the S&P 500 index would reach the 6,000 level after Trump’s Liberation Day, but Goldman Sachs provided a forecast that it could hit 6,000. Now it has crossed both the forecasts of 6,000 and 6,600. The only target left to attain now is the 6,800 level by the end of 2025 and the 7,000 to 7,200 range in the next six to 12 months.