Definition
A price target is an analyst's projection of where a stock's price will be, typically 12 months out. It's based on fundamental analysis, valuation models, and market assumptions. Analysts publish targets with their ratings; consensus price target aggregates multiple analysts. Significant changes to targets can move stocks.
Example
Analyst sets $150 price target on a stock trading at $120, implying 25% upside potential over the next year.
FAQ
What is Price Target?
An analyst's projected price for a stock over a specific time period.
Why is Price Target important?
Price Target helps investors evaluate fundamental analysis and make more informed decisions.