Price Target

The price targets disseminated daily by equity analysts drive investor and trading action in the relevant company’s stock. A price target is simply what an analyst models where a stock price is headed over a given time horizon based on earnings projections and other market, industry sector and company specifics. Price targets across the analyst community can and do very dramatically – they can be higher or lower than the current price. Consensus targets have emerged as an aide to providing a clearer view, although basically as averages, these may not provide clearcut signals.