How do analysts determine a price target?

Analysts consider numerous fundamental and technical factors to arrive at a price target. Analysts generally publish their price targets along with their buy, sell, and hold recommendations for a stock. Price targets for the same security can be different because of the various valuation methods used by analysts, traders, and institutions.

Why are price targets different?

Price targets for the same security can be different because of the various valuation methods used by analysts, traders, and institutions. A price target is a price at which an analyst believes a stock to be fairly valued relative to its projected and historical earnings.

What is a stock price target?

Ultimately, price targets depend on the valuation of the company that's issuing the stock. Analysts generally publish their price targets in research reports on specific companies, along with their buy, sell, and hold recommendations for the company's stock. Stock price targets are often quoted in the financial news media.