Wells Fargo Investment Institute on Tuesday upped its year-end S&P 500 price target to a range of 2,300 to 2,400, up from its prior range of 2,230 to 2,330, CNBC reports.

The bank's increase its predicated on robust overseas growth and second-quarter earnings. 

"Earlier this year, we had concerns that investors might fret over potential for a 2018 pickup in inflation and interest rates," Paul Christopher, Wells Fargo's head global market strategist wrote. "But our new (and more moderate) inflation expectations imply less S&P 500 index downside than we previously had anticipated."

Wells now expects S&P 500 earnings per share at $129, inferring a 17.83 to 18.60 price-to-earnings ratio.

"We expect faster economic growth and low inflation in the second half to support continuing S&P 500 Index earnings growth," Christoper added, citing strong earnings results in the second-quarter. But, "small-cap valuations remain stretched versus historical levels ... We recommend investors remain evenweight mid caps and underweight small caps."

The median year-end S&P 500 target among Wall Street banks is about 2,430, with Morgan Stanley's (MS) 2,700 outlook the highest and Fundstrat's 2,275 estimate the lowest, according to CNBC. 

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