In around two minutes you will know what is a Price Target. You will get both professional definition and easy explanation. No intro, no outro, straight to the point.

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Price Target is an analyst’s projection of a security’s future price.

We all at some point assumed how much a stock can cost in the future. Let’s say, right now XYZ shares are traded at $50 each. But you think that the demand for XYZ services will be higher during this year, so you think that next year share price of XYZ will be $60. This $60 is the price target.

Price targets can be estimated by various different methods, both used by fundamental and technical analysts.

Usually, price targets are estimated for 12 or 18 months in the future.

Estimating price targets is just one of the responsibilities of investment companies. And they frequently publish their projections along with their buy, hold, or sell recommendations.

Such reports can be used by investors and traders to base their investment and trading decisions.

However, it is my honest recommendation to avoid investing in companies relying solely on such recommendations and price targets.

No matter how accurate is the forecast, price target is still just an estimate. Therefore, stocks rarely meet their projections accurately.

Anything can and most likely will happen during 12- or 18-months period.

You can use such reports only to motivate your own investment due diligence.

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