A Target Stock Price Is Really…
May 10th, 2006A target price for a stock is an amount published by a securities industry person, usually an analyst. It is only a price prediction about where a stock may be headed. Most of the time target stock prices are associated with a date in which the stock is expected to hit a particular target. Keep in mind where these price figures are coming from…from someone with a vested interest in the issue. For example target price could come an analyst whose firm was the underwriter or one whose firm is brown-nosing the company. It could come from a company with a large position in the stock or an individual who is trying to talk the stock up so he can get out ahead or even. There is also the possibility that the analyst does not have an agenda and actually really thinks the stock price is really going places. But most of the time target prices are nothing more than wishful thinking. A better way to go before jumping on the target price band wagon is to do your own homework and know first hand what you’re getting into.