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 ?
The Japanese industry ministry plans to set target prices for next generation cars such as electric vehicles as part of a new three-year purchase incentive system from fiscal 2013, a ministry official said Monday.
SYNOPSIS: This study examines a sample of 103 sell-side analysts' reports to document the frequency with which analysts disclose target prices as justifications for their stock recommendations.
You might, for example, set target prices for some or all of the stocks you own and place limit orders at those levels.
A foundry can base target prices on such criteria as gross dollar profit per machine shift, revenue per mold or percent gross profit--choosing one as primar criterion and using the others as secondary.
Recommendations and target prices are six-month time horizons.
Our new target price is $70, which is 21 times our fiscal 2008 EPS estimate.
Our target price of $31 is based on a P/E [price-to-earnings] multiple of 15x our fiscal year 2008 EPS [earnings per share] estimate, which represents a generous P/E-to-growth ratio of 1.
We maintain our Buy rating and target price of $57, which represents a P/E-to-growth ratio of 1.
We maintain our Buy rating and increase our DCF-based target price from $48 to $60.
Accordingly, we maintain our BUY recommendation with a six-month target price of $49.
However, rising costs and volatile oil prices lead us to rate the stock a Hold with a six-month target price of $124.

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