Key Takeaways RBC Capital increased its S&P 500 forecast to 8,150, maintaining confidence in continued bull market momentum Meta is allocating $135 billion toward AI infrastructure in 2026 an
RBC Capital has identified two compelling investment opportunities for the latter half of 2026: Meta Platforms and the recently independent Honeywell Aerospace. These recommendations arrive alongside RBC strategist Lori Calvasina’s decision to elevate her S&P 500 price objective to 8,150 from the previous 7,900 level.
Calvasina cited robust earnings expansion, a healthy GDP environment, and restrained investor enthusiasm as factors supporting additional market appreciation. While the Federal Reserve has maintained its current rate policy, newly appointed Chair Kevin Warsh has indicated openness to rate increases should inflationary pressures persist.
Meta delivered first-quarter 2026 revenue of $56.3 billion, representing a 33% year-over-year increase and surpassing analyst projections by over $755 million. The company’s earnings per share reached $10.44, marking a 62% surge compared to the prior-year period.
Digital advertising constituted approximately 98% of total revenue. Advertisement impressions throughout Meta’s platform ecosystem increased 19% annually, while the average cost per advertisement advanced 12%.
Meta has announced capital expenditure plans totaling $135 billion for 2026, representing nearly double its 2025 investment level. These funds are being directed toward artificial intelligence infrastructure development, data center expansion, and proprietary AI processing chip technology.
RBC analyst Brad Erickson emphasized that Meta’s unparalleled behavioral intelligence, compiled from more than 40% of the global population, positions the company to expand beyond traditional advertising revenue streams. He anticipates the organization transforming into what he described as an “automated incubator” for emerging business ventures.
Erickson maintains an Outperform rating on Meta with an $810 price objective. Shares currently trade near $582.90. The Street’s overall sentiment stands at Strong Buy, derived from 32 Buy ratings and 5 Hold recommendations among 37 covering analysts. The consensus price target sits at $818.23.
Honeywell Aerospace commenced trading as a standalone public entity on June 29, following its divestiture from Honeywell International. The Phoenix-based organization provides solutions for commercial aviation, defense contractors, and space industry clients.
The enterprise produces avionics systems installed in 90% of worldwide aircraft. Since 1959, it has manufactured over 100,000 auxiliary power units, with its components integrated into 80% of satellite systems.
RBC analyst Ken Herbert, positioned within the top 1% of Wall Street analysts, highlighted the company’s advantageous positioning on critical contracts, including exclusive supply arrangements for Boeing 737 and Airbus A320 auxiliary power systems.
Herbert assigns an Outperform rating with a $300 price objective. Current trading activity shows shares at $247.15, suggesting potential appreciation of approximately 21%. Analyst consensus registers as Moderate Buy, comprising 2 Buy ratings and 5 Hold recommendations from seven analysts. The average price target stands at $263.13.
RBC previously elevated its price target on the parent Honeywell International before the separation, pointing to anticipated margin improvement and artificial intelligence enhancements to its Forge industrial software platform.
Both equity selections underscore RBC’s overarching perspective that stock markets maintain strong fundamentals as 2026 progresses.
The post RBC Capital’s Top 2 Stock Picks for Late 2026: Meta (META) and Honeywell Aerospace (HONA) appeared first on Blockonomi.
