Read this article last night and it made me wonder. How common is this in Equity Research?
Trending Content - Equity Research Forum
Career Resources
WSO Free Modeling Series - Now Open Through
August 31, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
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.
Ad consectetur voluptas iusto. Quo esse nemo dolorum ut velit eum voluptatem. Quis est dignissimos voluptatibus aperiam doloremque impedit. Non est cum amet aut est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...