Target Price

Target price is where you believe the price of a security is headed over the course of your investment horizon. For example, if Apple is currently trading at $115 and you believe over the next six months, it’ll reach $130, then the target price is $115.

Based on the target price, we can calculate compute the upside or downside potential of the security. In the example above, the upside of Apple is simply $$ \frac{130}{115} - 1 = 13\%. $$