If you read the job descriptions of equity analysts, you’d think the job consists of a lot of number crunching and analysis to come up with the best possible forecasts for a company’s future earnings and share price. But who are we kidding? In what is approximately the 1,000th installment of the long-running series “analysts are humans, too”, I want to show you how analysts really come up with their target prices for shares. Obviously, I cannot speak for any specific analyst, but thanks to
Sorry for the noob question ( I don't work in finance), when is a price forecast useful? When it is correct on the direction or when it is accurate? Or both? And by how much are the American price forecasts typically off? I imagine this is outside the scope of the paper but what about the Indian or Australian stock market, same things there?
Was there any breakdown between buy side and sell side analysts?
Sorry for the noob question ( I don't work in finance), when is a price forecast useful? When it is correct on the direction or when it is accurate? Or both? And by how much are the American price forecasts typically off? I imagine this is outside the scope of the paper but what about the Indian or Australian stock market, same things there?