To buy or not to buy? The value of contradictory analyst signals

Kanne, Stefan; Klobucnik, Jan; Kreutzmann, Daniel; Sievers, Soenke

doi:10.1007/s11408-012-0196-z

Cited by 3 publications

(2 citation statements)

References 36 publications

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“…Barniv et al (2020) use international data to generalize Brown and Huang's (2013) findings. Huang et al (2009) and Kanne et al (2012) find that consistent signals between target prices and recommendations yield higher returns and are more informative than inconsistent signals.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…Prior studies suggest that consistency in revision directions between an analyst's revisions of various forecast outputs signals high forecast quality (Barniv et al, 2020; Brown & Huang, 2013; Kanne et al, 2012; Kecskés et al, 2017). When analysts' revisions of a forecast output bundled for multiple firms are associated with lower (higher) quality, revision consistency may mitigate (strengthen) the decreased (increased) perceived quality of bundled revisions of the outputs if it involves greater effort to reconcile inconsistency and achieve revision consistency between the revised outputs.…”

Section: Introductionmentioning

confidence: 99%

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Financial analysts' bundling across firms: Target prices and stock recommendations

Chen

Palmon

2023

J of Financial Research

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A rising trend is that analysts bundle earnings forecasts for multiple firms on the same day, and such forecast bundling is associated with low‐quality forecasts. We explore target price bundling and recommendation bundling. Factors driving bundling revisions of an output for multiple firms vary across three outputs: forecasts, target prices, and recommendations. Target price (recommendation) revisions bundled for firms are less informative than stand‐alone revisions. Although consistency in the direction of revisions between different outputs is typically associated with higher perceived quality, consistent revisions between outputs are not associated with higher informativeness of revisions bundled for multiple firms.

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