RBC raised its S&P 500 (^GSPC) target to 5,700 from 5,300. However, the analyst behind the call noted growing risks of a near-term pullback.
Brad Smith and Madison Mills break down the call and analyze the index’s outlook for the second half of the year.
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
This post was written by Melanie Riehl
Video Transcript
We’re now going to get to our vibe.
Check on this Tuesday morning another day, another lift on the S and P for price target calls, this time coming from our BC set their price target on the S and P 2, 5700 and 5300 that comes from their head of global equity strategy Lady have seen now.
She did have it as a nervous and jumpy ball.
When it comes to the call saying that R BC does, he risks of a near term growing but still getting that call from R BC here and again.
Another quote that I thought was interesting here, saying we continue to view our price target is more of a compass, a rough guide than GPS precision tool.
So certainly leaving a little bit of room to be wrong when it comes to that call, but a big kind of capitulation when it comes to them, and especially given the timing.
We’ve seen so many others come out already and increase their calls from the lower 52 5300 area up to the 57 region so interesting to see themselves coming out.
But calling themselves tired bows here, Brad.
Yeah, which is interesting.
Especially as you have city talking about another S and P target increase.
But city says stocks are headed for a summer squall here.
I mean, and all the the weather people out there they love to hear of a squall, right?
Because it’s a you know, you usually look at his, uh, blip blizzard, if you will.
But during the the summer, it’s a larger question of what could propel.
What could really, Um, And because of volatility that you would naturally think about during a blizzard.
What type of volatility could we see that could eventually push us to some of these new targets?
And where does that mean we would end or finish out the year, at least in cities, perspective or purview?
It looks like they’re projecting this target of 5600.
Um, that we could perhaps end or finish the year at or around here for the S and P 500.
Um, but again, valuations right now are high.
We’ve already had many of the analysts that we’ve spoken with calling for what we could see in a retreat in valuations in the near term.
But a larger question of where there would be kind of continued strength to strength right now has really been in the crowding into a few trades.
Largely legion led by the A trade right now.
Yeah, and to that end, less so in terms of the I I trade.
But they mentioned some potential risks to this call.
They say that the economy does appear to be entering a soft patch and also that the stock market could experience more volatility as we get closer to the presidential election.
But they do see that potential pullback being short term moving forward.
So R BC coming in with another price target raise here 5700 for year end on the S and P.
