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What is a Price Target?

Analysts will often assign price targets to their buy, hold, sell recommendations.  For example, a buy rating with a price target of $60 for a stock trading at $55 would represent a $5 upside.

Technical traders often set their own price targets for each trade. While this is very subjective it is usually based on a traders risk tolerance, investment horizon, and personal analysis.

TipRanks aggregates all price targets from all analysts recommending a stock and creates a high, average, and low price target based on a combination of them all.

In a “Take-Profit Order – T/P” the price target is a part of the order itself. If the currency or stock moves in a favorable direction, once it goes above the desired price level the position will close and “take the profit”.

price target example

price target by analysts

 

Analyst Price Target

TipRanks scans the web for ratings from all analysts listing 12-month price targets on a stock in the last 3 months. The average of these target expectations is the Analyst Price Target, which will either reflect upside or downside potential for the stock. This reveals positive or negative sentiment circling a given stock’s opportunity. The Analyst Price Target can help investors choose which stocks pose the biggest growth potential on Wall Street.

The Best Analyst Price Target measures up recent analyst 12-month target expectations against the market. TipRanks’ data pinpoints the analysts beating the market with their 12-month target expectations on a stock over the course of the last three months.