Do Sell-Side Analysts Exhibit Differential Target Price Forecasting Ability?

@inproceedings{Bradshaw2013DoSA,
  title={Do Sell-Side Analysts Exhibit Differential Target Price Forecasting Ability?},
  author={Mark Thomas Bradshaw and Lawrence D. Brown and Kelly Huang},
  year={2013}
}
We examine the overall and individual analyst performance of 12-month-ahead target price forecasts over the 10 years from 2000 through 2009. Implied target price-based returns exceed actual returns by an average of 15 %, and absolute target price forecast errors average 45 %. At the end of the 12-month forecast horizon, only 38 % of target prices are met, but 64 % are met at some time during the forecast horizon. We find statistically significant but economically weak evidence of persistent… CONTINUE READING

Figures and Tables from this paper.

Citations

Publications citing this paper.
SHOWING 1-10 OF 55 CITATIONS

Consensus Analyst Target Prices : Information Content and Implications for Investors

Asa B. Palley
  • 2019
VIEW 5 EXCERPTS
CITES RESULTS & BACKGROUND
HIGHLY INFLUENCED

Analyst Target Prices and Forecast Accuracy around the World

VIEW 8 EXCERPTS
CITES METHODS, BACKGROUND & RESULTS
HIGHLY INFLUENCED

1 Valuation Methods Used by Financial Analysts and Target Price Accuracy

Elisa Cavezzali
  • 2015
VIEW 5 EXCERPTS
CITES RESULTS, BACKGROUND & METHODS
HIGHLY INFLUENCED

Do Analysts Understand Momentum? Evidence from Target Prices

VIEW 11 EXCERPTS
CITES BACKGROUND, RESULTS & METHODS
HIGHLY INFLUENCED

Target price forecasts : Fundamentals and behavioral factors

VIEW 12 EXCERPTS
CITES BACKGROUND, RESULTS & METHODS
HIGHLY INFLUENCED

Financial Analysts ’ Accuracy : Do valuation methods matter ?

VIEW 8 EXCERPTS
CITES METHODS & BACKGROUND
HIGHLY INFLUENCED

Target Price Accuracy: International Evidence

VIEW 6 EXCERPTS
CITES BACKGROUND & RESULTS
HIGHLY INFLUENCED

Expectations in the Cross Section: Stock Price Reactions to the Information and Bias in Analyst-Expected Returns

Johnathan Loudis
  • 2019
VIEW 6 EXCERPTS
CITES BACKGROUND & RESULTS
HIGHLY INFLUENCED

FILTER CITATIONS BY YEAR

2011
2019

CITATION STATISTICS

  • 14 Highly Influenced Citations

  • Averaged 7 Citations per year from 2017 through 2019