Implications of consensus target prices
Equity analysts are one of the most important players on the capital markets. They directly influence price movements of the analyzed stock. The main outputs of the analysis are the buy, hold or sell ratings and the analysts’ target prices. This dissertation tests whether the difference between the...
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2009
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| Online Access: | https://eprints.nottingham.ac.uk/23183/ |
| Summary: | Equity analysts are one of the most important players on the capital markets. They directly influence price movements of the analyzed stock. The main outputs of the analysis are the buy, hold or sell ratings and the analysts’ target prices.
This dissertation tests whether the difference between the consensus target price and the actual stock price remains stationary over the long period of time. If that is true, we can develop simple rules which would enable us to use the Target-to-real stock price ratio (TRP ratio) to identify buy/sell signals for specific stocks. |
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