What Are Analyst Ratings? Definition and Example
What “buy”, “outperform” and “overweight” actually mean, why most ratings are buys, and how to read one without being misled.
GlossaryGlossary
What Is a Consensus Price Target? Definition and Example
How a consensus rating and price target are built, why the mean and median can disagree, and how to read the spread between analysts.
Key takeaways
- A consensus price target is the average (mean or median) of the current price targets published by the analysts covering a stock; the consensus rating averages their buy, hold and sell ratings.
- Mean and median can differ a lot: for Tesla on Sep 30, 2026, Exent’s data showed a $421 mean target but a $460 median.
- The spread between the highest and lowest target shows how much analysts disagree; for Tesla it was larger than the mean itself.
- A consensus hides who made each call and how good their record is.
Which stocks do Wall Street’s best‑ranked analysts agree on? See them in Exent Gems →
What is a consensus rating and consensus price target?
A consensus combines many analysts into one number. The consensus price target averages each analyst’s latest price target. The consensus rating scores each rating (for example buy = 1, hold = 2, sell = 3) and averages the scores.
Mean vs median: which is better?
The median is usually more robust. One very low or very high target pulls the mean but barely moves the median. When the two differ by more than a few percent, look at the outliers before trusting either.
Example: three stocks, three pictures
| Stock | Price | Mean target | Median | Low–high | Spread ÷ mean |
|---|---|---|---|---|---|
| Tesla (TSLA) | $382.70 | $421.27 | $460 | $119–$600 | 114% |
| NVIDIA (NVDA) | $229.28 | $268.22 | $265 | $140–$380 | 89% |
| Apple (AAPL) | $336.64 | $295.31 | $300 | $205–$350 | 49% |
| Stock | Tesla (TSLA) | NVIDIA (NVDA) | Apple (AAPL) |
|---|---|---|---|
| Price | $382.70 | $229.28 | $336.64 |
| Mean target | $421.27 | $268.22 | $295.31 |
| Median | $460 | $265 | $300 |
| Low–high | $119–$600 | $140–$380 | $205–$350 |
| Spread ÷ mean | 114% | 89% | 49% |
Why it matters for a self-directed investor
A consensus treats a 5-star analyst and a weak one the same. Weighting by track record changes the picture, because analysts’ past accuracy varies widely. See how to read analyst consensus and analyst star ratings.
Common mistakes
- Treating the gap to the consensus as an expected return.
- Ignoring stale targets that have not been updated after earnings.
- Ignoring dispersion: a wide spread means the consensus is a weak signal.
See price targets weighted by track record with Exent
- Open a stock in Stocks Radar to see its price targets and the analysts behind them, ranked by past accuracy.
- Gems flag stocks where several top‑rated (4★+) analysts agree.
Frequently asked questions
Each analyst’s rating is converted to a score and the scores are averaged. Different data providers use different scales and cut-offs, so the same stock can show slightly different consensus ratings.
The price has run ahead of analysts’ estimates. Either analysts raise their targets or the stock’s valuation is stretched by their standards.
More is better, but quality matters as much as quantity. A consensus of a few analysts is easily moved by one change.
Get the picks Wall Street’s best analysts agree on.
Exent tracks 4,000+ analysts, keeps only the elite few with proven records, and surfaces the Gems where they agree.
See this week’s GemsLimited offer$1.95 for full access· full access
Educational content, not investment advice. Examples are illustrative; past performance does not guarantee future results.