target price

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.

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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.