Upside refers to the potential increase in the price of a security, such as a stock, bond, or other financial instrument in the next 12-months.

Investors and analysts often use the term "upside" to describe the positive potential of a stock or investment, and they may refer to the potential upside when making investment decisions or providing recommendations.

The upside is typically determined by comparing the current market price of the asset to its intrinsic value or what it is worth based on various factors such as the company's financial performance, market trends, and macroeconomic conditions.

The upside is often calculated based on the Price Target consensus made by Wall Street analysts.

Example:

For example, if a stock is currently trading at $50 per share, but a couple of analysts from Goldman Sachs, Citibank, JP Morgan believe that the stock is actually worth $70 per share (they are setting Price Target at that price), then the potential upside would be $20 per share or 40% ($70 - $50 divided by $50).

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