Oppenheimer has cast tariff fears aside, raising its year-end S&P 500 (SPX) price target to a street high of 7,100. The asset management and research firm lowered its price target to 5,950 in response to President Trump’s reciprocal tariffs announced in April.
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“With the announcement of trade deals (Japan, EU) by President Trump… we believe that enough ‘tariff hurdles’ have been overcome for now,” wrote Oppenheimer strategists led by John Stoltzfus in a note.
The price target implies upside of about 11% from Friday’s close of 6388.64.
Oppenheimer Hikes S&P 500 EPS Estimate
Since the April low, the benchmark index is up nearly 30% in a historic comeback. Oppenheimer believes more upside is on the way in “‘babies (quality stocks) that get tossed out with the bath water’ in market downdrafts.”
Oppenheimer also raised its 2025 EPS estimate to $275 from $265, which would equate to a forward P/E ratio of 25.8x. That’s well above the 25-year historical average of 17.0x.
The S&P 500 is up by 8.62% year-to-date.
