Analysts Price Target Question

[gavine]

When I see an analyst price targets, am I supposed to know when they predict the price to hit that target? They never seem to clarify that. Is there some general rule of thumb? I mean, if someone gives a price target of $1,000, does that mean tomorrow, next week, next month, next year or ten years from now?

 

[mblakele]

Generally price targets are for 12-18 months, usually twelve.

Price Target: How to Understand and Calculate Plus Accuracy

A price target is an analyst's projection of a security's future price, one at which an analyst believes a stock is fairly valued.

www.investopedia.com

However ARK uses longer time horizons:

ARK’s Price Target for Tesla in 2025 is $3,000 Per Share

ARK’s 2025 price target for Tesla is $3,000. ARK’s bear and bull case suggest it could be worth $1,500 and $4,000 per share, respectively.

ark-invest.com

 

[gavine]

Generally price targets are for 12-18 months, usually twelve.

Price Target: How to Understand and Calculate Plus Accuracy

A price target is an analyst's projection of a security's future price, one at which an analyst believes a stock is fairly valued.

www.investopedia.com

However ARK uses longer time horizons:

ARK’s Price Target for Tesla in 2025 is $3,000 Per Share

ARK’s 2025 price target for Tesla is $3,000. ARK’s bear and bull case suggest it could be worth $1,500 and $4,000 per share, respectively.

ark-invest.com

Thanks. The Ark article specifically states 2025 which is great but most of the time dates or timelines are not mentioned by analysts. I'll start assuming 12 months then.