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    Definition of target price

    Dictionary of Accounting Terms: target price
    target price

    expected market price for a product, given the company's knowledge of its customers and competitors.

    Dictionary of Business Terms: target price
    target price

    Finance: price at which an acquirer aims to buy a company in a takeover.
    Manufacturing: maximum wholesale or retail price for a product being developed.
    Options: price of the underlying security after which a certain option will become profitable to its buyer.

    Dictionary of Finance and Investment Terms: target price
    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: price that an investor is hoping a stock he or she has just bought will rise to within a specified period of time. An investor may buy XYZ at $20, with a target price of $40 in one year's time, for instance. broker recommendations are often accompanied by a target price predicated on research analysis.

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