AI Generated Image
RBC lifts S&P 500 price target but warns that it could be a rocky ride
CNBC • • general
Key Points:
- RBC Capital Markets raised its 12-month S&P 500 price target by 250 points to 8,150, implying a 10.8% upside from last week's close.
- Lori Calvasina, head of U.S. equity strategy, highlighted stronger earnings per share and valuation signals as key drivers behind the increased target.
- The forecast anticipates a non-linear upward path for stocks, with potential volatility due to factors like possible Federal Reserve rate hikes.
- Fed funds futures suggest a 64% chance of a rate hike in September, but Calvasina's team is slightly less concerned than a month ago, citing optimism from lower oil prices and inflation.
- Compared to other Wall Street strategists who predict a year-end S&P 500 around 7,807, RBC's outlook is more bullish, expecting moderate pullbacks of 5-10% if recession fears remain low.
