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Target price

As explained in Investing for Programmers

A target price is an analyst's estimate of the future market price or value of a stock over a specified time horizon.

A target price estimates a stock’s future value over a specified horizon, commonly 12 months. Analysts derive it from available financial data, often using fundamental analysis or DCF models, but methods may be proprietary. section 2.5 section 2.5.2

Table 2.15 Target prices of selected companies
Company
Price ($)
Mean price ($)
Median price ($)
High price ($)
Low price ($)
Recommended mean
Recommended key
No. of analysts
Apple (AAPL)
203.92
228.85
232.5
300.0
170.62
2.1
Buy
40
Microsoft (MSFT)
470.38
509.11
500.0
650.0
429.86
1.4
Strong buy
50
NVIDIA (NVDA)
141.72
172.02
175.0
220.0
100.0
1.44
Strong buy
55
Salesforce (CRM)
274.51
354.25
360.0
442.0
225.0
1.7
Buy
52
Data taken from the yfinance library on June 8, 2025

Compare current prices with mean, median, high, and low analyst targets, recommendation scores, and analyst counts for selected companies. section 2.5.2

Use target prices as uncertain inputs rather than promises:

  • Treat estimates as opinions because unpredictable events can invalidate assumptions about stable market conditions. section 2.5.2
  • Compare ranges and analyst counts, and examine rating changes to understand market sentiment rather than relying on one forecast. section 2.5.2
  • Avoid treating professional ratings or forecasts as guaranteed returns; analysts can be wrong and recommendations require due diligence. section 2.5.2 section 2.6

How Investing for Programmers covers it

How deep it goes
Defines 12-month estimates and price ranges, names DCF analysis, and stops short of exposing proprietary methods or reliable prediction.
Examples
Compares Apple, Microsoft, NVIDIA, and Salesforce using current prices, target ranges, recommendations, and analyst counts.
What you can do after
Evaluate/understand target prices as probabilistic, speculative estimates requiring comparison and independent due diligence.
How it connects
Connects target prices to fundamental analysis, DCF models, analyst ratings, market sentiment, and financial data.

Related concepts

This explainer was generated by Manning's knowledge graph from the text of Investing for Programmers. The section links point to the parts of the book it draws on.