Traders work on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., November 11, 2022.
Andrew Kelly | Reuters
I'm a (very happy) Investing Club member and would love to see a discussion of analysts' price targets. Here are my three most pressing questions:
- How are PTs arrived at? And why do they vary, sometimes widely, from analyst to analyst?
- Do the analysts actually expect the stock to reach those targets?
- Most important, as investors, how should we understand and utilize PTs as we manage our own portfolios and make buy/sell/hold decisions?
Thanks so much. — Robbi