The average target price prediction for Target (TGT) stock is $142.58.
Understanding Target's Stock Price Forecast
This prediction is derived from the consensus of 27 Wall Street analysts who have issued 12-month price targets over the past three months. This average represents an anticipated increase of 7.76% from the current price of $132.31.
Analyst Price Target Breakdown
Analyst price targets offer a range of expectations for a stock's future performance, reflecting different perspectives on the company's fundamentals, market conditions, and industry trends.
Key data points regarding Target's stock price predictions are summarized below:
Metric | Value |
---|---|
Average Price Target | $142.58 |
Current Stock Price | $132.31 |
Highest Forecast | $180.00 |
Lowest Forecast | $108.00 |
Analysts Covered | 27 |
Projected Increase | 7.76% |
How Price Targets Are Formulated
Financial analysts typically use a variety of valuation methods to arrive at their price targets, including:
- Discounted Cash Flow (DCF): Projecting future cash flows and discounting them back to the present.
- Comparable Company Analysis (CCA): Valuing the company based on the valuations of similar publicly traded companies.
- Precedent Transactions Analysis: Looking at the prices paid for similar companies in mergers and acquisitions.
- Sum-of-the-Parts Analysis: Valuing different business segments of a company separately and then adding them up.
These analyses consider factors like sales growth, profit margins, market share, competitive landscape, economic outlook, and company-specific news.
Importance of Price Targets
Price targets serve as a guide for investors, indicating where analysts believe a stock's price could move within a specified period. They can help investors:
- Assess potential upside or downside: By comparing the current price to the target.
- Understand market sentiment: A high consensus target often suggests positive sentiment.
- Inform investment decisions: Though they should not be the sole basis for investing.
It's important to remember that price targets are projections and actual stock prices can vary due to market volatility, company performance, and unforeseen events.