Target price is the price at which a company believes that its stock is fairly valued by the market. A Target price may be set by a company’s management, or it may be the result of an analyst’s research.
A Target price may also be referred to as a price Target or fair value estimate.
The term “Target price” is often used interchangeably with “price Target.” A company’s management team may set a Target price for its stock, or an analyst may come up with a Target price based on his or her research.
In either case, the Target price represents the price at which the company believes its stock is fairly valued by the market.
There are a number of reasons why a company might set a Target price for its stock. A Target price may be used as guidance for investors, or it may be used as a tool to help manage expectations.
In some cases, a Target price may also be used to help assess whether a stock is undervalued or overvalued.
Analyst research is one of the most common methods for setting a Target price. Analysts will look at a number of factors, including a company’s financials, industry trends, and competitive landscape, in order to come up with a fair value estimate.
Target prices can vary widely from one analyst to the next, so it’s important to track multiple estimates.
What is Target Price Mean?
A Target price is the projected future price of a security. It is usually set by investment analysts and institutions rather than by the companies themselves. The idea behind setting and following Target prices is that if enough investors buy shares when they reach the Target level, then demand will cause prices to rise even higher.
