Valuation · updated October 21, 2026
What is an analyst price target and how much should you rely on it
A price target is the price an analyst thinks the stock will reach over the next 12 months. The consensus is the average or median of the price targets of all analysts covering the company. The gap to today's price is called upside.
Price target formula
- Price target
- The analysts' consensus for 12 months from now.
- Today's price
- The latest price on the exchange.
Worked example
A stock trades at $100. Five analysts have price targets of $95, $110, $115, $120 and $140.
The big gap between the most cautious analyst ($95) and the most optimistic ($140) shows how uncertain the estimate is.
How to read price target
In the screener you will find the "Stocks with analyst upside" recipe. Also check how many analysts cover the company and how spread out their targets are.
When price target can fool you
Analysts are optimistic: on average, price targets sit above where the stock ends up. They follow the price: many targets get changed after the stock has already moved. Conflicts of interest: banks that publish research may also do other business with the same company.
Related terms
Learn it in the Academy
Questions about price target
How accurate are price targets?
Not very. Studies show stocks reach their 12-month target only about half the time. They are more useful for the direction of opinion than as an exact price.
What is the difference between a price target and fair value?
A price target says where analysts think the price will be in a year. Fair value estimates what the business is worth, with no specific date.
These explanations are for information only. They are not a recommendation to buy or sell.
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