What are stock analysts telling us when they change price targets.

Z

zdreg

e.g.
  • Cabaletta Bio, Inc.
    CABA-19.9%+ Free Alerts
    dropped 17.9% to $1.03. Morgan Stanley downgraded Cabaletta Bio from Overweight to Equal-Weight and lowered the price target from $15 to $3.
What is the message they are giving?
 
zdreg said:
Morgan Stanley downgraded Cabaletta Bio from Overweight to Equal-Weight and lowered the price target from $15 to $3

What is the message they are giving?
More...

It's all just their personal opinion and hypothesis on what's something worth, and where it should be heading towards.
It may or may not all be that accurate.

Giving out recommendations is highly political, I've never truly trusted those buy and sell and price target points.
All those wall street guys are trying to pull strings and be puppeteers and profit from their pull and say and sway. Some may be in cohorts with heavy investors, traders, and fund managers.
 
That they think the stock is worth less or more. You should read their research and compare it to your own view to arrive at a judgement. Good analysts are like movie ratings — helpful to get the basic idea, but your own opinion may diverge.
 
longandshort said:
That they think the stock is worth less or more. You should read their research and compare it to your own view to arrive at a judgement. Good analysts are like movie ratings — helpful to get the basic idea, but your own opinion may diverge.
More...
Take my example above. It is not like movie rating. You see a movie. You don't upgrade /downgrate 70% over time. What was the analyst doing between changing the target from 15 to 3? Who said he has even issued a report when he changed the target.

Your response is= to what you would hear in a college investment 101 class. There is no correlation to reality.
 
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Anal-ysts are paid to put buy price targets on stonks, not sell price targets.

Morgan Stanley's guy must be reaching for a shot of CABO-wabo Tequila about now. lol
 
MacBookProHo said:
It's all just their personal opinion and hypothesis on what's something worth, and where it should be heading towards.
It may or may not all be that accurate.

Giving out recommendations is highly political, I've never truly trusted those buy and sell and price target points.
All those wall street guys are trying to pull strings and be puppeteers and profit from their pull and say and sway. Some may be in cohorts with heavy investors, traders, and fund managers.
More...
You understand the scene. I am looking to see what their motivation is. Does one trade with it or against it or just laugh when an analyst changes his target from 100 to 10. Where was he when the stock e.g. moved from 50 to 5?
 
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zdreg said:
Take my example above. It is not like movie rating. You see a movie. You don't upgrade /downgrate 70% over time. What was the analyst doing between changing the target from 15 to 3? Who said he has even issued a report when he changed the target.

Your response is= to what you would hear in a college investment 101 class. There is no correlation to reality.
More...
Lol have you ever actually read an equity research report from a bulge bracket?
 
MacBookProHo said:
It's all just their personal opinion and hypothesis on what's something worth, and where it should be heading towards.
It may or may not all be that accurate.

Giving out recommendations is highly political, I've never truly trusted those buy and sell and price target points.
All those wall street guys are trying to pull strings and be puppeteers and profit from their pull and say and sway. Some may be in cohorts with heavy investors, traders, and fund managers.
More...
%%
MANY of them give price targets\ almost like trend following+ they move those targets also\:caution::caution: They did it quite a bit on tech stocks like AMZN, in 1990s.
But they have one big advantage over trend followers;
if a stock drops 50% by close, they can downgrade it by sunset + still get credit for a correct call.
Some do wise work . What was her name that noted Citigroup paid out more in dividends than they made in profits?? . And made the case that would lead to bankruptcy- Oct 31 ,2007-Meridith Whitney
 
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