![]() Here's Why There Could be Plenty of Upside Left in ADDYYĪnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. ![]() ![]() So, price targets should always be treated with a high degree of skepticism. That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces. However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts. They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading. Here's What You Should Know About Analysts' Price TargetsĪccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. ![]() Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. However, an impressive consensus price target is not the only factor that indicates a potential upside in ADDYY. And investors making investment decisions solely based on this tool would arguably do themselves a disservice. Here you can find the up-to-date consensus estimates.While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. Gerresheimer AG does not accept any liability whatsoever as to any disadvantages arising to third parties from the use of the non-binding information on this webpage. This overview is for informational purposes only and does by no means represent an invitation or promotion to purchase, hold or sell Gerresheimer shares. Please contact the analysts or their firms directly if you are interested in copies of reports. This site is regularly updated following the release of our financial figures. The analyst recommendations and price targets exclusively represent the opinions of these analysts and do not represent the opinion, estimate or forecast of Gerresheimer AG. Gerresheimer AG does not give any guarantee for the correctness, completeness or timeliness of these recommendations and price targets or their presentation. The following overview is based on publications by analysts of banks and brokers who currently have published comments, valuations and recommendations regarding Gerresheimer shares. On this webpage, we provide you with an overview of these analyst recommendations and price targets. These analysts publish recommendations and price targets on the basis of their own research. ![]() Gerresheimer AG is being analyzed by a multitude of German and international financial analysts. ![]()
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