TransAlta Corp Surpasses Analyst’s Price Target: What’s Next for Investors?
In recent trading, shares of TransAlta Corp (Symbol: TAC) have crossed above the average analyst 12-month target price of $14.13, changing hands for $14.33/share. When a stock hits the target set by analysts, there are typically two reactions: they may downgrade the stock due to valuation concerns or raise their target price if they believe the company is on an upward trend. Analysts’ responses may also be influenced by recent developments in the company’s fundamentals that contributed to the surge in stock price.
Eight different analysts within the Zacks coverage universe contribute to the average target for TransAlta Corp. However, this average is merely a mathematical summary. While some analysts have lower targets, with one suggesting a price of $11.14, others see potential as high as $22.30. The standard deviation across these targets stands at $3.837, indicating varying opinions about future price movements.
The importance of the average TAC price target lies in the collective insights it represents, drawing on multiple analysts rather than an individual viewpoint. With TAC’s recent progress above the average target price of $14.13/share, current investors are encouraged to reevaluate the company’s positioning. They must consider whether $14.13 is just a stepping stone toward a higher target or if the stock is overvalued, warranting a potential sell-off. Below is a summary of the latest ratings from analysts covering TransAlta Corp:
| Recent TAC Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 7 | 6 | 6 | 6 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 1 | 1 | 0 | 0 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.33 | 1.38 | 1.14 | 1.14 |
The average rating shown in the last row of the table is based on a scale from 1 to 5, with 1 being Strong Buy and 5 being Strong Sell. This analysis utilized data provided by Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
