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.

Related Courses

Revenue Management 
Revenue Recognition