Say you’re an investor. You’re trying to figure out whether to buy or sell a certain stock. One data point that can help is the stock's target price, a number that is predicted by a stock analyst based on a few factors.
“This is where I think the stock is going to be, say by the end of the quarter, based on everything I know now, everything I see ahead,” explained Karen Petrou, managing partner at Federal Financial Analytics.
If an analyst thinks a stock will hit $100, but right now it’s sitting at $50, that might be a cue to buy.