A price target is an analyst's projection of a security's future price. ... When setting a stock's price target, an analyst is trying to determine what the stock is worth and where the price will be in 12 or 18 months. Ultimately, price targets depend on the valuation of the company that's issuing the stock.

How is price target calculated?

Price Target Formula

It is calculated as the proportion of the current price per share to the earnings per share. read more uses the earnings for the past twelve months. Thus, the current market price is divided by the average earnings of the last twelve months. In the Forward P/E ratio, the estimated earnings.

What is the price target for Tesla?

Reiterating their buy rating, they said Tesla and rival NIO are “well positioned,” with secular growth in EV driving around 30% compound annual growth rate [CAGR] between 2020 and 2030, and Tesla noting its own 50% CAGR production target.