Join our community of smart investors

Ideas Farm: Target down

Is wide analyst disagreement a reliably bearish signal for equities?
Ideas Farm: Target down
  • Analysts’ target prices have been well off the mark
  • Might there still be a lesson from target prices?
  • Lots of idea generating content

Analysts’ target prices, like most market predictions, have been found wanting in recent months.

This should never be a surprise in a bear market, given that investment banks and brokerages are usually incentivised to be bullish about the near-term prospects for stocks. But the scale of the errors in their collective price forecasting shows that even investment professionals can struggle to gauge the near-term outlook for asset values.

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in