Target Price Definition

Dictionary of Financial Terms

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.

Definitions of Financial Terms