What are price targets and how to use them

Source: cnbc.com cnbc.com

Key Topics in this News Article:

News Snapshot:

I'm a (very happy) Investing Club member and would love to see a discussion of analysts' price targets. Here are my three most pressing questions: How are PTs arrived at? And why do they vary, sometimes widely, from analyst to analyst? Do the analysts actually expect the stock to reach those targets? Most important, as investors, how should we understand and utilize PTs as we manage our own portfolios and make buy/sell/hold decisions? Thanks so much. — Robbi Where do price targets come from? A price target is an analyst's best estimate of a company's fair value, and developing one...