BMO Capital has raised its year-end S&P 500 target to 7,000, moving its forecast to what the firm had originally called its bull case scenario.
Analysts at the bank said the revision reflects the strength of the rally and resilience of the U.S. market.
“Yes, we are prepared for the cynicism that will most certainly come our way as we revise our S&P 500 year-end price targets to our bull case that we first published in November 2024,” BMO Capital wrote.
“Here comes the race to the top. However, why is that such a bad thing? Why is it bad that stocks have actually GONE UP this year in the face of a macro narrative that has been WRONG once again?”
The firm highlighted its long-standing belief that the U.S. stock market is in the midst of a “25-year secular bull market,” a call it has reiterated for more than 15 years.
It also pointed to its investment process and discipline as the reason for strong performance this year, noting that “our process kept us invested in 2025 which resulted in the best quarterly performance during 2Q that we have ever had in over 20 years of overseeing equity portfolios.”
BMO Capital cautioned that “markets are rarely linear for long and a blow-off top and eventual settling-in phase at 7,000 is a more prudent and likely result.”
Still, analysts argued that conditions remain supportive, citing Federal Reserve rate cuts, firming earnings, broadening performance, and the absence of an AI bubble.
“In fact, 2025 could very well be the table setter for a 1995-1996 redux of goldilocks,” BMO Capital said.
Source :
https://www.investing.com/news/stock-market-news/sp-500-price-target-lifted-to-7000-at-bmo-4257767
