Yatırımcı.AI

Target price

A target price is the price an analyst expects a stock to reach, usually within 12 months, according to their valuation model. A target price is the fair value calculated by brokerage research teams using discounted cash flow, multiples or sum-of-the-parts methods.
Contents
  1. 1.Key points
  2. 2.Formula / calculation
  3. 3.Interpretation
  4. 4.Pitfalls
  5. 5.Frequently asked questions

Key points

  • It is published with a buy, hold or sell recommendation and expresses the stock’s potential return.
  • A target raise or cut is a stronger signal than the level itself.
  • targets are revised often and depend on assumptions (FX, rates, growth).

Formula / calculation

Upside = (Target price − Current price) / Current price × 100. Analysts typically rate 15–20%+ upside as "buy", ±10% as "hold" and negative upside as "sell". Yatırımcı.AI stock pages list target prices by broker along with the average.

Interpretation

A target raise or cut is a stronger signal than the level itself. The average of several brokers’ targets (consensus) is more balanced than a single house view.

Pitfalls

targets are revised often and depend on assumptions (FX, rates, growth). Analysts are more inclined to issue "buy" than "sell". A target price is a research opinion, not investment advice, and historical accuracy can be low.

Pages where this term appears

Related terms

Frequently asked questions

A target price is the price an analyst expects a stock to reach, usually within 12 months, according to their valuation model.

Upside = (Target price − Current price) / Current price × 100. Analysts typically rate 15–20%+ upside as "buy", ±10% as "hold" and negative upside as "sell". Yatırımcı.AI stock pages list target prices by broker along with the average.

Yatırımcı.AI ResearchMethodology