target price


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Target price

In the context of takeovers, the price at which an acquirer aims to buy a target firm.
In the context of options, the price of the underlying security at which an option will become in the money.
In the context of stocks, the price that an investor hopes a stock will reach in a certain time period.

Target Price

1. In mergers and acquisitions, the purchase price of the target company.

2. The price at which an investor hopes to buy or sell a security. That is, when an investor takes a position on a security he/she hopes that the investment will become profitable. The target price is the price at which the investment becomes worth the effort and money put into it.

3. In options, the price at which a contract becomes in-the-money.

target price

1. The price that an investor or a security analyst expects a security to achieve. Generally, when a security achieves the target price, it is time to close out a position in it.
2. The price at which an investor hopes to purchase an asset. For example, a company desiring to take over another firm may set a target price for the firm.
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References in periodicals archive ?
Meanwhile, the maximum target price for beef was set at 1,010 yen per kg, down 10 yen, while that for pork was set at 480 yen per kg, down 5 yen.
Accordingly, we maintain our BUY recommendation on ESLR with a six-month target price of $10.
As a result, our year-end target price is reduced 40% to $0.
As a result, we maintain our Buy rating but have adjusted our target price to $60.
However, rising costs and volatile oil prices lead us to rate the stock a Hold with a six-month target price of $124.
Our target price of $31 is about 18x times our fiscal 2007 EPS estimate.
We have a Hold rating on the stock and a target price of $7.
We continue to rate shares of NDS a Buy, with a target price of $56.
Thus, we maintain our Hold recommendation for Sonus with a higher six-month target price of $8.