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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The opinion of an analyst on how far a security may rise in price. It is usually expressed in terms of the price to which it might possibly rise. For example, if an analyst believes that a stock trading at $10 will rise to $12, it has an upside potential of $12. Obviously, there is no guarantee that the security will actually rise to the predicted level. See also: Downside Risk.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar price or the dollar amount of gain that may reasonably be expected in the particular security or security average. For example, an analyst may feel that a stock currently selling at $25 per share has an upside potential of $40. Compare downside risk.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.