Analysts’ Earnings Forecast, Recommendation and Target Price Revisions

@inproceedings{Feldman2012AnalystsEF,
  title={Analysts’ Earnings Forecast, Recommendation and Target Price Revisions},
  author={Ronen Feldman and Joshua Livnat and Yuan Zhang},
  year={2012}
}
This study examines the immediate and delayed market responses to revisions in analyst forecasts of earnings, target prices, and recommendations. Consistent with prior literature, revisions in earnings forecasts are positively and significantly associated with short-term market returns around the revisions. However, we show that short-term market returns around target price revisions and recommendation changes are even stronger. We also find superior future performance (return drift) for… CONTINUE READING