Updated
Updated · CNBC · Jun 29
RBC Lifts S&P 500 Target to 8,150 as Stronger EPS Signals 10.8% Upside
Updated
Updated · CNBC · Jun 29

RBC Lifts S&P 500 Target to 8,150 as Stronger EPS Signals 10.8% Upside

3 articles · Updated · CNBC · Jun 29

Summary

  • RBC Capital Markets raised its 12-month S&P 500 target by 250 points to 8,150, implying 10.8% upside from last week's close.
  • Lori Calvasina said stronger earnings-per-share and valuation signals drove the increase, with her model assuming trailing four-quarter EPS of $337 in the first quarter of next year.
  • RBC still expects a choppy path, warning that moderate Fed rate hikes could trigger only "garden variety" pullbacks of 5% to 10%; futures show a 64% chance of a September hike.
  • The firm said it has slightly less concern than a month ago as lower oil prices and easing inflation could support sentiment if recession fears stay contained.
  • The call stands above the 7,807 average year-end target tracked by CNBC Pro, with the S&P 500 already up more than 8% in 2026 and heading for a fourth straight annual gain.

Insights

Can AI's explosive profit growth truly defy the gravity of the Federal Reserve's upcoming interest rate decisions?
With stocks and bonds sending opposite signals, which market holds the true key to the economy's future direction?
Is the AI-fueled earnings boom a sustainable economic revolution or the next massive market bubble waiting to pop?