Key Takeaways
- RBC Capital has increased its S&P 500 forecast to 8,150, maintaining confidence in the ongoing bull market
- Meta plans to deploy $135 billion toward AI infrastructure throughout 2026, following 33% Q1 revenue expansion
- RBC projects Meta could reach $810 per share, representing approximately 39% potential gains
- Honeywell Aerospace launched as an independent entity on June 29, commanding roughly $78 billion in market valuation
- RBC assigns Honeywell Aerospace an Outperform rating with a $300 target, indicating 21% appreciation potential
RBC Capital has identified Meta Platforms and the recently separated Honeywell Aerospace as its preferred equity selections for the latter half of 2026. These recommendations accompany RBC strategist Lori Calvasina’s decision to elevate her S&P 500 forecast from 7,900 to 8,150.
Calvasina cited continued earnings expansion, stable economic fundamentals, and relatively cautious investor positioning as factors supporting further market advancement. While the Federal Reserve under Chair Kevin Warsh has maintained current interest rate levels, the possibility of tightening remains if inflationary pressures persist.
Meta’s Aggressive AI Investment Strategy
Meta delivered $56.3 billion in first-quarter 2026 revenue, marking a 33% year-over-year increase and surpassing analyst projections by over $755 million. The company’s earnings per share reached $10.44, reflecting a 62% jump compared to the prior-year quarter.
Digital advertising revenue accounted for approximately 98% of total sales. Ad impressions throughout Meta’s platform ecosystem increased 19% year-over-year, while the average cost per advertisement rose 12%.
The social media giant now anticipates capital investments totaling $135 billion during 2026, representing nearly double its 2025 expenditure levels. These funds are being allocated toward artificial intelligence infrastructure development, data center construction, and proprietary AI chip manufacturing.
RBC analyst Brad Erickson highlighted Meta’s competitive advantage stemming from behavioral data collected from more than 40% of the global population, positioning the company to expand beyond traditional advertising models. He envisions Meta transforming into what he described as an “automated incubator” capable of launching new business ventures.
Erickson maintains an Outperform rating on Meta with an $810 price objective. The stock currently trades near $582.90. Across Wall Street, the consensus stands at Strong Buy, derived from 32 Buy recommendations and 5 Hold ratings among 37 covering analysts. The average analyst target sits at $818.23.
Honeywell Aerospace Embarks on Independent Journey
Honeywell Aerospace commenced trading as a standalone public corporation on June 29 following its divestiture from Honeywell International. Operating from Phoenix headquarters, the company addresses commercial aviation, defense sector, and space industry clientele.
The aerospace manufacturer provides avionics systems integrated into 90% of aircraft worldwide. Since 1959, it has manufactured over 100,000 auxiliary power units, with its components featured in 80% of satellite systems.
RBC analyst Ken Herbert, who ranks among the top 1% of Wall Street analysts, emphasized the company’s strategic positioning on critical contracts, including exclusive supplier arrangements for Boeing 737 and Airbus A320 auxiliary power units.
Herbert assigns the stock an Outperform rating with a $300 price objective. Trading at $247.15 currently, the shares carry implied upside potential of approximately 21%. The broader Wall Street consensus registers as Moderate Buy, comprising 2 Buy and 5 Hold ratings from seven analysts. The consensus price target stands at $263.13.
Prior to the separation, RBC had upgraded its price target on Honeywell International, anticipating margin improvement and artificial intelligence enhancements to its Forge industrial software platform.
Both equity selections align with RBC’s overarching perspective that market fundamentals remain supportive throughout the remainder of 2026.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
