Synthesizing nine different methods of calculating the metric's outlook, including measures of currency and consumer confidence, the analysts came up with the 4 percent revision to their earlier forecast, of 1825 by June 2014.
Citi's latest projection also represents a 12 percent uptick to current S&P 500 levels.
“Various indicators argue for continued gains in 2014,” wrote the analysts. They noted their preference for stocks as an investment over gold, citing 125 years of historical data and reiterating their 2011 Raging Bull Thesis, which laid out six bullish trends for the U.S. economy in coming years.
They also set a forecast of 17,100 for the Dow Jones Industrial Average index, for the end of 2014.
For 2013, the analysts stuck to a 1650 mark for the S&P 500, up slightly from 1615. They cautioned, however, that the shift for 2013 “should not be seen as a bold statement.”
“The investment community may face a couple of turbulent months before the rally is re-established,” wrote the analysts.
Key events which could roil markets include political battles over the debt ceiling and the Federal Reserve’s scaling back of quantitative easing, expected by many to be announced later this week.
The S&P 500 index stood at 1687 points before the start of trading on Monday. It hit an all-time high earlier on Aug. 1, 2013, when it closed at 1709. The index is based on the market caps of the top 500 U.S. public companies.