Raymond James sticks with 5,800 S&P 500 target

Moz Farooque

Tue, May 13, 2025, 11:54 PM 1 min read

Raymond James chopped its S&P 500 (SP500) earnings-per-share estimation for 2025 from $270 to $250$255, citing softer economical enactment and muted firm spending, yet near its year-end scale people of 5,800 intact, based connected a dependable GDP maturation outlook.

The firms' Chief Investment Officer, Larry Adam, points to a landmark U.S.-China woody that slashes American tariffs connected Chinese imports from 145% to 30% and Chinese duties connected U.S. goods from 125% to 10% for 90 days, reopening proviso lines and easing fears of acute shortages. Markets cheered the tariff reprieve: the S&P 500 rallied astir 3% disconnected its caller lows aft the announcement.

Despite the tariff truce's relief, Adam cautions that equity valuations are already stretched, leaving constricted runway for aggregate enlargement without a stronger net backdrop. He calls the outlook cautious optimism, noting that portion downside risks person receded, upside drivers stay scarce absent an unexpected boost to firm profits.

Why it matters: A little EPS scope underscores the tug-of-war betwixt argumentation catalysts and real-world economical headwinds, forcing investors to temper instrumentality expectations adjacent arsenic commercialized tensions ebb.

Investors volition absorption connected Q2 net and Fed commentary for clues connected whether this tariff model tin prolong maturation and revive nett momentum.

This nonfiction archetypal appeared connected GuruFocus.