What are analysts really good at?

• Main Authors: KADAN, Ohad, MADUREIRA, Leonardo, WANG, Rong, ZACH, Tzachi.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: Analysts; Benchmarks; Stock Picking; Industry Picking; Market Timing; Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5413; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6412/viewcontent/SSRN_id1961199.pdf
• Institution: Singapore Management University

Sell-side analysts employ different benchmarks when defining their stock recommendations. Forexample, a ‘buy’ for some brokers means the stock is expected to outperform its peers in the same sector(“industry benchmarkers”), while for other brokers it means the stock is expected to outperform themark...