What is an analyst target price?
Definition
An analyst target price is a forward-looking opinion from a research firm: the price level the firm believes a stock could reach, often over the next 12 months. It is not a promise of performance—it summarizes professional judgement based on models, news, and sector outlook.
Why multiple targets exist
Different firms update targets at different times and use different assumptions (growth, interest rates, margins). That is why consensus metrics—mean, median, and sometimes low/high bands—are useful: they summarize dispersion across many analysts rather than one headline number.
How we show it on this site
We display Yahoo Finance–derived consensus fields such as mean target, survey low/high where available, and recent firm-level target changes. Always pair targets with context: valuation, risk, and your own objectives.
A simple price target example
Suppose a stock trades at $80 and the consensus mean target is $100. The implied upside is 25%: ($100 − $80) ÷ $80. If the target is $72 instead, the same calculation gives 10% implied downside. This percentage compares two snapshots; it does not estimate the probability that the stock will reach the target.
Mean, median, low, and high targets
The mean adds all published targets and divides by the number of analysts, so one extreme estimate can pull it higher or lower. The median is the middle estimate and is less sensitive to an outlier. The low-to-high range shows how widely analysts disagree. A wide range usually signals greater uncertainty, different assumptions, or uneven update timing.
Why the 12-month horizon matters
Most analyst targets are framed around the next 12 months, but firms do not all publish on the same day. A consensus can therefore combine fresh post-earnings work with older estimates. Check the dates of recent firm-level revisions before treating the current mean as a single, synchronized Wall Street forecast.
How to read target revisions
A raised target can reflect stronger earnings assumptions, a higher valuation multiple, or a lower perceived risk premium. A lowered target can happen even when an analyst keeps a Buy rating. The direction, size, date, and prior target matter more together than the new number alone. Our target-moves page groups these firm-level changes for comparison.
Common mistakes to avoid
Do not treat the highest target as the expected outcome, compare targets from different dates as if they used the same information, or assume a large implied upside means low risk. Thin analyst coverage makes averages especially fragile. Use targets as one research input alongside earnings quality, valuation, balance-sheet risk, and company-specific catalysts.
Apply the guide to current data
Use the existing comparison and stock pages below to connect the definitions above with current consensus figures and firm-level revisions.