Explore 'Target Price,' a key financial metric representing an analyst's projected future value for a stock or security. Typically set for a 12-month horizon,...
A stock's target price is an analyst's projection of its future market value over a specific period, usually 12 months, derived from fundamental and technical analysis.
Target prices are set by financial analysts working for brokerage firms, investment banks, or independent research organizations after comprehensive research and valuation modeling.
No, target prices are estimates and not guarantees. They are speculative and subject to market volatility, economic changes, company performance, and unforeseen events.
Investors should use target prices as one data point among many, complementing their own research, risk assessment, and overall investment strategy, rather than as a sole determinant.
Key factors include company earnings forecasts, industry trends, economic outlook, competitive landscape, valuation methodologies, and a company's management quality.