Deutsche Bank raises S&P 500 year-end 2025 target from 6,150 to 6,550

Deutsche Bank has lifted its year-end 2025 forecast for the S&P 500, raising its target from 6,150 to 6,550. The bank’s analysts point to easing tariff pressure on corporate profits and the resilience of the US economy as key reasons for the revision. Similar adjustments were recently made by Goldman Sachs, UBS Global Wealth Management, and RBC Capital Markets.

Deutsche Bank strategists noted that the impact of trade tariffs on corporate earnings has been roughly three times weaker than initially expected. The bank’s revised forecast now stands more than 10% above the index’s current levels, which are hovering around 5,910 points.

In May, the S&P 500 posted its strongest monthly gain since November 2023. The rally was fueled by President Donald Trump's softer tariff stance, robust corporate earnings, and moderate US inflation data. According to Reuters, these factors helped the market recover from its April slump.

Still, Deutsche Bank is cautioning investors about potential heightened volatility in the S&P 500 in case trade tensions escalate again. Meanwhile, the financial institution has raised its earnings per share estimate for the index from $240 to $267.