Stock Analyst Price Target Accuracy

Summarize and cite studies which quantify the predictive power and accuracy of stock analyst 1 year price targets

REFINED: Please provide a comprehensive summary and citation of studies that specifically quantify the predictive power and accuracy of stock analyst 1 year price targets.

ANSWER: Based on the research I was able to access, I found some relevant studies regarding the predictive power and accuracy of stock analysts' 1-year price targets:

1. 2012 Study of Analysts in 41 Countries:

   • This study encompassed over 11,000 analysts and found that the overall accuracy of target prices for a 12-month horizon was around 30%.
   • Additionally, it was observed that the farther the target price from the market price, the lower the accuracy, and vice versa.
   • Source: Analysts' target prices rarely accurate, global study finds - Financial Post

2. University of Waterloo and Boston College Study:

   • This research also reported that only about 30% of 12-month predictions were fairly accurate, based on a similar study that examined price targets set by 11,000 experts in 41 countries.
   • Source: Analyst Price Targets and How They Are Determined - Wall St. Rank

It's important to note that while these findings provide some insights, they may not fully represent all aspects of analyst price target accuracy. Unfortunately, access to some of the detailed academic papers and studies was restricted, which limited the comprehensiveness of this summary.

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1. Explore more details about the 2012 study of analysts in 41 countries.
2. Investigate further studies on stock analyst price target accuracy.
3. Learn about factors influencing the accuracy of stock analyst price targets.