The price target set by an analyst is a price that they believe the stock will hit in the next twelve months from the date of the research report. For example, if an analyst believes Amazon will hit $2000 sometime during the next year, they will set a $2000 price target on the stock. If the company receives negative news, they may issue a new research report and lower their price target. Likewise, if the company reports better than expected earnings or has other positive news, they may raise their twelve month price target.

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