President Trump informed Mexico and the European Union over the weekend that they will be subject to 30% tariffs, effective as of August 1. That didn’t stop RBC Capital Markets from raising its 2025 S&P 500 (SPX) price target to 6,250 from 5,730, or an increase of 9%.
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“We feel neutral on the outlook for stocks in the second half of 2025, and are mindful that our new price target is essentially in line with recent levels,” said RBC strategists led by managing director Lori Calvasina. The investment bank’s bull-case price target is 6,500, or about 4% above current levels.
S&P 500 Already Higher than RBC’s Target
In June, RBC raised its price target to 5,730 from 5,500. RBC joins Goldman Sachs (GS) and Bank of America (BAC), which both raised their price targets last week. Goldman has a target of 6,600, up from 6,100, while BofA increased its target to 6,300 from 5,600.
While RBC raised its price prediction, it maintained its 2025 earnings per share estimate of $258, which is below the consensus estimate of $265. RBC cited pressure from tariffs and expectations of less favorable interest rates.
The S&P 500 has returned 6.43% year-to-date and is already trading higher than RBC’s price target.
