Target price is a term used in finance and marketing that refers to different concepts. Here are the different meanings of target price:
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Stocks: A target price is an estimate of the future price of a stock based on earnings forecasts and assumed valuation multiples. It is an analysts projection of a securitys future price, one at which an analyst believes a stock is fairly valued.
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Product pricing: Target pricing is a pricing strategy that sets a price point for a product or service that is appealing to customers and still provides a reasonable profit margin for the business. It is the process of estimating a competitive price in the marketplace and applying a firms standard profit margin to that price in order to arrive at the maximum cost that a new product can have.
It is important to note that target prices are not necessarily always accurate, so investors or businesses should do their own research before investing or pricing their products based on the targets of other analysts.