Barclays Sees US Stocks Upside, Targets 7,650

Barclays strategists say US equities remain constructive despite YTD underperformance versus Europe and APAC.
Small‑cap index up 10% YTD while equity funds attracted over $100 bn inflows, contrasting $40 bn outflows from EM funds.
Barclays projects FY26 S&P 500 EPS growth 9.4% ahead of decade trend, setting year‑end target 7,650 (≈7% upside).
Valuation sits at 70th percentile of 10‑year range, with Big Tech near 14th percentile, Industrials and Comm Services most stretched.