How to use Analyst Price Targets on Simply Wall St

In this short video, we'll explain our new analyst price target check, and how you can use this analysis to make a better informed investing decision.

Our final check in valuation is to assess what analyst’s think of a stock. Analysts covering a company do extensive research on the underlying business and its prospects and they provide what’s known as a price target. This price target is essentially an indication of where they think the stock price could be trading at in the future, based on their research and forecasts of the business’ prospects.

As we know with valuation, forecasts of the future can vary widely depending on who you ask, so naturally, different analysts can have different price targets for the same stock. That’s why we’ve created the new Analyst Price Targets check. It not only incorporates the range of analyst’s current price targets and compares them to the current stock price, but it also shows us how previous price targets have compared to actual share price performance over time.

The Analysts Price Target check tells us whether there might be an upside opportunity with the stock, and more importantly, if we should have confidence in that consensus price target. You can see in the chart how this is represented, and the table above it provides a summary.

You can review our valuation analysis on any stock in your portfolio on the Simply Wall St platform: https://simplywall.st/dashboard