The official Wall Street forecasts are in. Here’s what they predict for the stock market in 2022

Published Thu, Dec 23 202111:16 AM EST

Jesse Pound @/in/jesse-pound @jesserpound

Wall Street strategists see another leg higher for stocks in 2022, but at a slower pace than the market has seen over the past two years. The average S & P 500 target for major banks in 2022 is 4,985, roughly 6% above where the index was closed on Wednesday, according to the CNBC Strategist Survey . The S & P 500 has gained roughly 27% in in 2021 after rising 16% in 2020. The most bullish outlook comes from Oppenheimer's John Stoltzfus, who has a target of 5,330. Stoltzfus said in a note to clients on Dec. 13 that he is optimistic about the U.S. economy being able to manage the recovery from Covid next year. "Our price target is based on a number of assumptions that include: Further success by science in addressing and responding to challenges brought by the COVID-19 pandemic and its variants; Continuation of the stateside economy to show resilience amidst the current period of uncertainty in a process of reopening," Stoltzfus said. Another bullish strategist is Goldman Sachs' David Kostin, who has a target of 5,100. Kostin's optimism is based on continued growth for corporate earnings in 2022. "Profit growth has accounted for the entire S & P 500 return in 2021 and will continue to drive gains in 2022. ... Companies have consistently expanded profit margins despite input cost pressures and supply chain challenges," Kostin said in a note to clients on Nov. 16. The lowest target on the list is 4400 — an implied decline of 6.3% — from Morgan Stanley's Mike Wilson. Morgan Stanley's projected earnings per share for the S & P 500 is actually higher than some other firms with higher targets. Despite that, Wilson is sticking to his view that the appetite for paying expensive prices will sour. "We think 2022 will finally bring the multiple compression we incorrectly forecasted for 2H 2021. Our 12-month target P/E of 18x is 15% below current levels but in line with the 5-year average and the top quintile for the past 30 years. The risk of de-rating has been deferred, not avoided," Wilson said in a note to clients. -CNBC's Michael Bloom contributed to this report.

The Charging Bull or Wall Street Bull is pictured in the Manhattan borough of New New York, January 16, 2019.

Carlo Allegri | Reuters

Wall Street strategists see another leg higher for stocks in 2022, but at a slower pace than the market has seen over the past two years.