Barclays raised its 2026 S&P 500 year-end target to 7,800 from 7,650 and lifted its 2026 earnings per share estimate to $337 from $321, implying roughly 6% upside from current levels. The upgrade is driven by higher earnings expectations rather than a richer valuation multiple, with the firm citing expanding AI capital expenditure as a genuine earnings driver and reflationary pressure as a tailwind for nominal revenue growth. Despite the higher target, Barclays warned that the second half will remain choppy, flagging risks from AI spending returns, higher-for-longer interest rates, consumer resilience, and geopolitical headlines, particularly Middle East tensions. The Federal Reserve held rates at 3.50% to 3.75% on June 17 and signaled possible further hikes, keeping pressure on valuations and making the earnings case more critical. Barclays' new target sits near the median of Wall Street strategist forecasts, with other banks also raising their targets this quarter based on improving earnings estimates.
Barclays PLCBarclays raised its S&P 500 target and EPS estimate, reflecting its own bullish analyst call.
HSBC Holdings PLC