Analyst Price Targets

A price target is an analyst estimate of where a stock will trade over a set period, usually the next 12 months. It reflects the analyst view of the company value based on their financial models and assumptions. Targets accompany ratings like buy, hold, or sell.

Use price targets as one input among many, not as predictions to follow blindly, since analysts often disagree and revise frequently. Look at the range and the consensus average rather than a single target, and pay attention to the reasoning behind it. Changes in targets, especially clustered upgrades or downgrades, can move a stock.

If ten analysts cover a stock trading at 80 dollars with price targets ranging from 70 to 110 dollars and a consensus of 95 dollars, the average implies roughly 19 percent upside, though individual views vary widely.