Recommendations & PT
As I've said before, price targets are the result of an evaluation that requires as much science as art. That's why I use this information as a reference.
This is what I like to see when analyzing this information:
- There are at least 3 analysts covering the stock;
- None of the analysts covering the stock recommends selling and the majority recommends buying;
- Recommendations should be updated (max 5/6 months old);
- The lowest price target represents at least 25% upside potential.
Of course some of these conditions are more important than others but this is my ideal scenario. Let’s see how they fit into SYRGS’s stock:
At this moment there are seven analysts covering the company, and all of them are positive. I notice an increased attention to SYRG this year. The last recommendation was an initial coverage, and the one before (Nov.) was a reiteration with a price target increase.
Some brokerage firms don't disclose a price target, but most of them do. Brean Murray and Wunderlich were the last two firms to issue a recommendation. Global Hunter Securities issued its report on July and has the lowest price target - $4.25 - which represents a downside of over 20% to the current stock price. Also, current market price represents an upside of 12% and 54% to the average and the highest PT, respectively.
According to the above image, I don't think there's a strong (if any) relationship between price targets (and changes in price targets) and market price. Nevertheless I think it had a huge run in the last days and it fails to meet my own guidelines at the current share price/target price.
Tópico: Recommendations & PT
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