Read this article last night and it made me wonder. How common is this in Equity Research?
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You want to see something funny? Look at the share count assumptions that banks use. Rarely do the analysts get even the share count right...tough to put a "per share" value on an arbitrary number.
Very common. Didn't read the whole article, but I saw BI pointed out that they changed the 2021-2025 earnings and didn't change the target price. Why yes - because most investors can't see / think beyond more than one year ahead, so clearly the street also values everything on something like next year's or NTM multiples. Generally, point stands - often times people will come up with a view they want to uphold and will make the numbers work towards that view, not the other way around.
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