Learn / Glossary / Price target
GlossaryWhat is Price target?
A price target is where an analyst thinks a stock could trade in about a year.
The simple explanation
It is an estimate based on the analyst's view of the company's future earnings. Targets are updated often and are frequently different from each other.
An example
A stock trades at 80 dollars and an analyst sets a price target of 95 dollars.
Why it matters
It shows how optimistic or cautious professionals are, although it is only a guess.
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Educational information, not financial advice.