Tuesday, December 18, 2007

Fundamental Analysis -Topic 6 Target Price Method

Target Price 

A target price for a stock is a figure published by a securities industry person, usually an analyst. The idea is that the target price is a prediction, a guess about where the stock is headed. Target prices usually are associated with a date by which the stock is expected to hit the target. (normal practice 12 months) http://invest-faq.com/articles/adv-target-price.html 

The projected price level as stated by an investment analyst or advisor. A stock trading at $60 might have a one year price target of $90. 
http://www.investopedia.com/terms/p/pricetarget.asp 

Target price model is basically fundamental analysis technique. But in technical analysis also price targets are given.

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