Target price

A target price is the price point that an investor or investment analyst expects a security to reach within a certain date range. The expectation for a target price drives an investor's decision to invest in or sell off a security. If the actual price eventually reaches the target price, the investor plans to exit his investment at that point. The target price is typically the most optimistic price that a security can reasonably be expected to attain. Since this price is at the upper end of the range of possible pricing outcomes, it is not especially likely to be achieved.