Street bullish, investor sentiment negative?
What drives wide dispersion between sell-side sentiment and buy-side sentiment?
Normally the sell-side price chases and re-rates stocks based on price vol. but occasionally I come across a stock that the street is crazy about ie. 50% upside target (avg. consensus) that isn't a commodity play but a growth story and investor sentiment will run completely counter... Anyone have an explanation for this? Also, there is almost NO short interest in the stock, just longs selling...
Do you have a few examples? Maybe some of us know the companies and can shed some light. There are plenty of times when the sell side is wrong. Most sell side reports have a buy rating (since buys is what gets them commission - or at least did before Mifid - and interest in the names they cover). Also, there are times what the growth story exists, but for some reason the management keeps failing to implement it (might not be their fault, but macro/industry reasons). So you can have a great growth story with only buy ratings that you'll ride all the way to the bottom (look up Transenterix for an example).
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