Helping lift the TSX Index are analysts’ upward revisions to their target prices this earnings season. Approximately 65 per cent of stocks in the S&P/TSX Composite Index have seen their average target prices rise over the past two months, and roughly one out of five stocks in the index have realized upward revisions to their average target prices by 10 per cent or higher. In contrast, only three per cent of stocks in the Index saw their average target prices decline by 10 per cent or more.
Now, here’s a look at analysts’ current target prices, recommendations, forecast returns and yields for securities in the S&P/TSX Composite Index grouped by sector and ranked according to their expected price returns . The posted target price for each security is an average of all available target prices from analysts.
It’s important to note that high target prices, which imply stellar returns that seem unbelievable may be just that - unrealistic. At times, when a stock price falls analysts may maintain their bullish expectations, inflating the forecast return. In addition, an outlier can skew the average target price, to the upside or downside, particularly when the number of analysts covering a stock is low.
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