FNArena’s Weekly Insights – September 07 2020
Dear time-conscious investor: Conviction Calls, stock ideas and investment themes post-August
In this week’s Weekly Insights:
-August 2020 Lifts Price Targets
-Stock Ideas & Conviction Calls
-Extras & Bonuses
August 2020 Lifts Price Targets
By Rudi Filapek-Vandyck, Editor FNArena
For securities analysts, each reporting season offers a welcome update on how companies are faring operationally, and this includes contracts, investments and sales, as well as margins, inventories and cash flows.
Within this framework, market forecasts had never looked as wide and as diverse as post-February, so the August reporting season has been more than just welcome, with widely diverging forecasts in many cases rejoining around a much more feasible middle ground.
For many an investor/shareholder, this background re-adjusting of modeling and forecasts is often largely ignored, even though paying attention can provide clues about future sentiment towards and the direction of a share price.
Not every investor is convinced these analysts are worth every cent they are being paid, but fact remains: upward and downward adjustments to forecasts act like a magnet on share prices, sometimes even on what looks like rather small changes.