Why are Wall Street stock analysts clueless?

[traider]

Why are they paid 400K when they are "useless"
Is it all about sales

 

[murray t turtle]

re: Hawaiian Holdings
Based on 6 Wall Street analysts offering 12 month price targets for Hawaiian Holdings in the last 3 months. The average price target is $4.00 with a high forecast of $5.00 and a low forecast of $3.00. The average price target represents a -17.70% change from the last price of $4.86.

merger price $18
What did the analyst miss in pricing Hawaii Airlines?

Susquehanna Maintains Neutral on Hawaiian Holdings, Lowers Price Target to $4
date: 10/23/23

%%
Carl Ichan made money in TWA;
but airlines sector , unions there have helped bankrupt so many, maybe better to miss it on low side??

 

[semperfrosty]

re: Hawaiian Holdings
Based on 6 Wall Street analysts offering 12 month price targets for Hawaiian Holdings in the last 3 months. The average price target is $4.00 with a high forecast of $5.00 and a low forecast of $3.00. The average price target represents a -17.70% change from the last price of $4.86.

merger price $18
What did the analyst miss in pricing Hawaii Airlines?

Susquehanna Maintains Neutral on Hawaiian Holdings, Lowers Price Target to $4
date: 10/23/23

Actually an interesting question in the context of that data.

Something was missed.Thats no 'fluctuation'.

 

[semperfrosty]

Even at a glance, a call of $8 or $10 would make more sense?

Something not right there.

 

[semperfrosty]

Even at a glance, a call of $8 or $10 would make more sense?

Something not right there.

 

[semperfrosty]

View attachment 328867

Perhaps a no-confidence vote for the Alaskan side?

 

[schizo]

I think dunking on Wall Street analysts is tired already …. That’s a really hard job you should try it. Markets are (obviously) very hard to predict.

Oh, weren't you the guy who poo-poo'd technical analysis and how it can't predict anything. So I suppose the "funnymentals" are that much useful either then.

 

[maxinger]

Newbies look at the stock analysts' report.

The rest are wise enough not to look at it.

 

[longandshort]

re: Hawaiian Holdings
Based on 6 Wall Street analysts offering 12 month price targets for Hawaiian Holdings in the last 3 months. The average price target is $4.00 with a high forecast of $5.00 and a low forecast of $3.00. The average price target represents a -17.70% change from the last price of $4.86.

merger price $18
What did the analyst miss in pricing Hawaii Airlines?

Susquehanna Maintains Neutral on Hawaiian Holdings, Lowers Price Target to $4
date: 10/23/23

This is a classical error when reading sell side reports. Sell side analysts give a price target for a specific scenario. Most analysts will actually include a range of prices based upon scenarios they expect, but non-paying customers only see their “base case”.

Sell side analysts will rarely call an m&a deal before it happens because they’re sometimes privy to mnpi and are not allowed to share it. For us on the buy side, they’re extremely useful and their context around revisions and scenarios is the most helpful.

 

[deaddog]

This book explains everything