Formal
The prediction of a broker of the realistic or ‘target’ share price of a quoted company. If a share is $4 and the broker recommends a target of $5 then the broker is effectively recommending the stock as a ‘buy’. Conversely, for a target price which is lower than the current price - the broker is recommending ‘sell’.
Real-world Example
An analyst sets a target price of $60 for a stock currently trading at $50, indicating they believe the shares have room to rise 20% based on the company's expected performance.
Comments
Please sign in to leave a comment.