Definition of 'Target Price'
Finance: price at which an acquirer aims to buy a company in a takeover.Options: price of the underlying security after which a certain option will become profitable to its buyer. For example, someone buying an XYZ 50 call for a premium of $200 could have a target price of 52, after which point the premium will be recouped and the call option will result in a profit when exercised. Stocks: a price set by analysts predicting where the stock will head in the next 52 weeks. Also, price an investor is hoping a stock will go to within a specified period of time.
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