Price Target

Loading the player...

DEFINITION of 'Price Target'

1. A projected price level as stated by an investment analyst or advisor.

2. A price that, if achieved, would result in a trader recognizing the best possible outcome for his or her investment. This is the price at which the trader would like to exit his or her existing position so that he or she can realize the most reward.

BREAKING DOWN 'Price Target'

1. An influential analyst on Wall Street may give a stock that is trading at $60 a one-year price target of $90.

2. The interesting thing about price targets is that there is no surefire way to calculate them. For example, two separate traders holding a stock that is trading at $60 may have drastically different opinions about where the stock will go. One trader may set his or her price target at $75, while the other will set it at $120. Price targets are a function of risk tolerance and the amount of time that one plans on holding the security.

In technical analysis, traders use tools such as previous support and resistance, Fibonacci extensions and moving averages to aid them in determining an appropriate price target.

RELATED TERMS
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. Risk Tolerance

    The degree of variability in investment returns that an individual ...
  3. Return

    The gain or loss of a security in a particular period. The return ...
  4. Resistance (Resistance Level)

    A chart point or range that caps an increase in the level of ...
  5. Wall Street

    1. A street in lower Manhattan that is the original home of the ...
  6. Analyst

    A financial professional who has expertise in evaluating investments ...
Related Articles
  1. Stock Analysis

    The Top 5 Small-Cap Technology Stocks for 2016 (AMD, CLS)

    Learn what the top five small-cap technology stocks are for 2016, with a summary, growth outlook and price target on each company for the upcoming year.
  2. Stock Analysis

    The Top 5 Mid Cap Healthcare Stocks for 2016 (COO, ICLR)

    Discover the top five mid-cap health care stocks for 2016, with a summary, growth outlook and expected price target for each company.
  3. Stock Analysis

    The Top 10 Healthcare Stocks for 2016 (ABT, AGN)

    Learn about the top 10 health care stocks expected to grow in 2016, with brief insights into each company's growth potential and expected target price.
  4. Stock Analysis

    The Top 5 Mid Cap Basic Material Stocks for 2016 (AXTA, ABX)

    Discover the five top mid-cap basic materials stocks for 2016, with a brief summary, growth outlook and expected price target for each company.
  5. Stock Analysis

    The Top 5 Large Cap Entertainment Stocks for 2016 (CBS, TWX)

    Discover what the top 5 large cap entertainment stocks are for 2016, with a summary, growth outlook and expected stock price target for each company.
  6. Stock Analysis

    The Top 5 Mid-Cap Technology Stocks for 2016 (AXE, AVT)

    Discover the top five mid-cap technology stocks for 2016, with a summary, growth outlook and expected price target for the upcoming year.
  7. Stock Analysis

    The Top 5 Mid-Cap Biotechnology Stocks for 2016 (ALNY, ICPT)

    Discover the top five mid-cap biotechnology stocks for 2016, with a brief summary, growth outlook and expected price target for 2016.
  8. Stock Analysis

    The Top 5 Large Cap Semiconductor Stocks for 2016 (AMAT, AVGO)

    Discover the top five large-cap semiconductors that are expected to grow in 2016, including a summary of each company and rational behind its expected growth.
  9. Stock Analysis

    The Top 5 Large Cap Biotechnology Stocks for 2016 (AMGN, BIIB)

    Discover the top five biotechnology stocks for 2016. Learn each company's main revenue drivers and what factors cause their stocks to rise in the New Year.
  10. Stock Analysis

    The Top 10 Technology Stocks for 2016 (AAPL, ARW)

    Discover the top 10 technology stocks for 2016. Learn each company's outlook, investment rationale and price target for the next 12 months.
RELATED FAQS
  1. Why do analysts sometimes give an overweight recommendation on a stock?

    Financial analysts give their opinions of the future performance of a security. They can give performance ratings of underweight, ... Read Full Answer >>
  2. How do I build a profitable strategy when spotting an Tri-Star pattern?

    Because the tri-star pattern is a relatively unreliable reversal signal on its own, a profitable trade strategy must include ... Read Full Answer >>
  3. I want to buy a stock at $30, sell when it reaches $35, don't want to hang on to ...

    Once you've identified a security that you want to purchase, you need to determine a price at which you want to sell if the ... Read Full Answer >>
  4. Where do I place my target when the price of a stock breaks out of a technical chart ...

    Technical chart patterns such as ascending triangles, head and shoulders and double bottoms have rapidly grown in popularity ... Read Full Answer >>
  5. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  6. Can working capital be too high?

    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>
Hot Definitions
  1. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  2. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  3. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  4. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  5. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  6. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
Trading Center