Price Target
An analyst's forecast of a stock's expected price over the next 12 months, based on a fundamental valuation model.
What is Price Target?
A price target is a research analyst's estimate of where a stock's price will be — typically over the next 12 months — based on fundamental analysis including earnings projections, valuation multiples (P/E, EV/EBITDA), DCF models, and comparable company analysis. Price targets accompany analyst ratings (Buy, Hold, Sell) and are recalibrated when company or macro conditions change. If the current stock price is well below a price target, the stock is considered undervalued relative to the analyst's model; if above, it may be considered overvalued. Price targets should be viewed as probabilistic estimates, not guarantees — actual outcomes frequently deviate due to unpredictable factors. Consensus price target (the average of multiple analysts) is widely tracked.
Example
In late 2023, Apple's consensus analyst price target was approximately $200. The stock traded at $183, meaning analysts on average expected roughly 9% upside. Individual targets ranged from $150 (most bearish) to $240 (most bullish), reflecting wide uncertainty even among professionals. Apple hit $220+ in mid-2024, exceeding most targets.
Source: SEC — Analyst Research Reports