How do fundamental researchers come up with 12 month TP?
I really struggle how fundamental research analysts can come up with a 12 month target price. For most of the companies, I see that there is always a "reasonable explanation" for why a company trades below or above peer average. The only thing I can think of how is how estimates move - but for a lot of smaller cap companies, there are barely "Street estimates" to speak of.
Looking for some insight.