RBC raises S&P 500 forecast, sees the market gaining another 3% from here

The stock market has a bit more room to run in 2021 after a robust start to the year, according to RBC Capital Markets, which on Tuesday hiked its forecast for the S&P 500.

Lori Calvasina, the bank's head of U.S. equity strategy, wrote in a note to clients that she now sees the market index finishing the year at 4,325, up from her prior target of 4,100. The new projection implies about 3% upside from where the S&P 500 ended April.