S&P 500: The 12-Month Target of Institutional InvestorsS&P 500SPCFD:SPXSwissquoteIn an analysis published on TradingView last week, I explained the main reason behind the continuation of the stock market’s underlying uptrend: valuation. Corporate profits and earnings prospects for S&P 500 companies are so substantial that, despite the index reaching new record highs, the stock market is becoming increasingly cheap in terms of valuation, according to the P/E ratio and forward P/E. You can click on the chart below to read my analysis on this topic again. You may now be asking yourself another question: if the underlying trend is bullish and short-term corrections represent opportunities, what target could the S&P 500 reach over the next 12 months? Several approaches can be used to answer this question: · Stock market valuation · Technical analysis of financial markets · The bottom-up approach Today, I will discuss the bottom-up approach, drawing on a very recent analysis published by FactSet. FactSet has compiled the 12-month price targets set by institutional analysts for all S&P 500 stocks. This makes it possible to derive a bullish target for the index over the next 12 months, namely October 2027. The bottom-up approach starts with the analysis of individual companies and works its way up to the stock market index. The average of the price targets for S&P 500 stocks provides the price target for the S&P 500 index. The takeaway: 9,200 points as the 12-month price target, representing nearly 20% upside from the S&P 500’s current level. The chart below (source: FactSet) shows institutional analysts’ 12-month price target for the S&P 500 index, implying more than 20% upside from the index’s current level. 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