Citi analysts cut S&P 500 price target to $5,600 after EPS revisions

On Sunday, research analysts at Citi revised their 2025 year-end price target for the S&P 500 down to $5,600 from $6,500. The revision was prompted by a decrease in expected earnings per share (EPS) for the current year. Its value now stands at $255. The previous estimate suggested reaching the mark of $270. 

The change in Citi's forecast followed a tumultuous period for the stock market, caused by Donald Trump's announcement of the introduction of sweeping trade tariffs and the subsequent announcement of a 90-day pause. Such decisions by the United States administration caused significant fluctuations in the S&P 500 price.

As noted by the organization's analysts, the initial optimistic sentiment at the start of the year has been replaced by significant uncertainty. According to their estimates, the tightening US tariff policy could disrupt the global trade system.

Meanwhile, the recent announcement of a 90-day pause in tariff hikes has opened the door for potential negotiations between countries. This has led to a marked rebound and some changes in investor sentiment. Nevertheless, as Citi states, the outlook remains uncertain.