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

[zdreg]

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MANY of them give price targets\ almost like trend following+ they move those targets also\ 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

Meredith Whitney is a voice from the past. Didn't she lose cache when her call for a municipal bond market blow up that did not occur?

 

[murray t turtle]

Meredith Whitney is a voice from the past. Didn't she lose cache when her call for a municipal bond market blow up did not occur?

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Maybe ;
even though Detroit + Orange county proved her right.
For all i know \ maybe she was the reason why so many muni bonds now have insurance??

 

[stonedinvestor]

Hello Z

I have found the use of analyst's actions extremely helpful but you have to know what to look for. It's a fine art.

Take away all the usual cynical responses.. yes most of them suck yes they cover their ass yes they come on after the fact and reduce and in the old days they dated the note the day before.

But these analyst notes can be very helpful as well. Take a two notch upgrade a stock that goes from sell all the way to buy or some amount of double jump up.. that's worth taking note of; what about when a price target goes from a high number to an even higher number when the stock itself is much cheaper?.. This is one of the best set ups: it indicates that analyst is sure of his or her damn research and knows what the stock should go for.

Likewise, when a long of yours gets a favorable I'm still at "buy" but a real serious price target reduction.. it's a signal to you to get the hell out!

Lastly, talks with management.. is always a line in an analyst note to hang your hat on: Chanel checks<-- we just visited and came away...

Bam ! ~stoney

 

[Cabin111]

I never short stocks (except QQQ in 2000...Missed it by 6 months). I will look for analyst rating for companies when beginning my search. If it's a constant downgrading, I will just look elsewhere. If I see many upgrades (with the stock dropping), I'll look further into the company. Look at the fundamentals; cash flow, debt, management, growing markets, number of employees, things like that.

So it's just a pass by...

 

[maxinger]

It means the stock analysts are unable to read charts.

and they are not aware that they are catching falling knives.

and they are telling us not to read their reports.

I thought they should change the target from $15 to $0.01


OK. serious discussion.
99% of the time, stock analysts would say
BUY BUY BUY !!!!!
Because they don't want to be murdered for saying
SELL SELL SELL !!!!!


Years ago, I used to track how many times stock analysts said BUY or SELL.
even for lousy hopeless stocks, stock analysts would say BUY BUY BUY !!!!

 

[margin_gamble]

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?

The Ratings system is exactly the same as the one me, they & and thee use when we empty the sacs and pull out

 

[zdreg]

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.

You understood my question.

 

[stonedinvestor]

UPGRADE OF THE DAY-! -- This is a Double Upgrade from Sell to Buy <-- rare
Also it comes with a review of the whole sector and some stks like Shoals, SHLD downgraded. So this is a direct competition upgrade.... And lastly the price target boost is beyond significant $172 from $60.

First Solar upgraded to Buy from Sell at Goldman Sachs 20:53
FSLR
Goldman Sachs analyst Brian Lee upgraded First Solar to Buy from Sell with a price target of $172, up from $60, as part of a broader research note on Solar names. The analyst states that the company is best-levered in his coverage to the tailwinds of the Inflation Reduction Act as the most immediate beneficiary of manufacturing credits as well as benefits from demand tailwinds given its above-80% exposure to the U.S. Lee also states that he has a more constructive outlook on First Solar's module gross margin recovery.

 

[stonedinvestor]

Z people who are boldface cynics about analysts don't know the game.

 

[stonedinvestor]

As I tried to explain in my answer the first time it is a fine art knowing how to read these upgrades and downgrades. A good upgrade is a lot like pornography, you know it when you see it.