TLDR
- RBC Capital raised its S&P 500 price target to 8,150, saying the bull market has room to run
- Meta is spending $135 billion on AI in 2026 and posted 33% revenue growth in Q1
- RBC has an $810 price target on Meta, implying around 39% upside
- Honeywell Aerospace began trading as a standalone company on June 29 with a ~$78 billion market cap
- RBC rates Honeywell Aerospace Outperform with a $300 price target, suggesting 21% upside
RBC Capital has picked two stocks it believes can outperform in the second half of 2026: Meta Platforms and the newly spun-off Honeywell Aerospace. The calls come as RBC strategist Lori Calvasina lifted her S&P 500 price target to 8,150, up from 7,900.
Calvasina pointed to earnings growth, a solid GDP backdrop, and subdued investor sentiment as reasons the market can still climb. The Federal Reserve has held rates steady, though new Chair Kevin Warsh has left the door open to a hike if inflation stays sticky.
Meta’s AI Bet
Meta reported $56.3 billion in revenue in Q1 2026, up 33% year-over-year, beating expectations by more than $755 million. Earnings per share came in at $10.44, up 62% from the same period last year.
Digital advertising drove nearly 98% of that revenue. Ad impressions across Meta’s apps rose 19% year-over-year, and the average price per ad climbed 12%.
Meta is now projecting capital expenditure of $135 billion in 2026, nearly double its 2025 spending. The money is going toward AI infrastructure, data centers, and its own AI processor chips.
RBC analyst Brad Erickson said Meta’s unmatched behavioral data, gathered from over 40% of the world’s population, puts it in a position to move beyond advertising. He sees the company evolving into what he called an “automated incubator” for new businesses.
Erickson rates Meta Outperform with an $810 price target. The stock trades around $582.90. Wall Street’s broader consensus is a Strong Buy, based on 32 Buys and 5 Holds from 37 analysts. The average price target is $818.23.
Honeywell Aerospace Goes It Alone
Honeywell Aerospace became an independent publicly traded company on June 29, following its separation from Honeywell International. It is headquartered in Phoenix and serves commercial aviation, defense, and space customers.
The company supplies avionics found in 90% of global aircraft. It has also delivered more than 100,000 auxiliary power units since 1959, and its parts are used in 80% of satellites.
RBC analyst Ken Herbert, ranked in the top 1% of Wall Street analysts, said the company is well-placed on key contracts, including sole-source positions on the Boeing 737 and Airbus A320 auxiliary power units.
Herbert rates the stock Outperform with a $300 price target. Shares currently trade at $247.15, giving it implied upside of around 21%. The broader analyst consensus is a Moderate Buy, with 2 Buys and 5 Holds from seven analysts. The average price target is $263.13.
RBC previously raised its price target on Honeywell International ahead of the spin-off, citing expected margin expansion and AI-related updates for its Forge industrial platform.
Both stocks reflect RBC’s broader view that equities remain on solid ground heading into the rest of 2026.
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