What drives the value of financial analysts’ advice? The role of earnings and growth forecasts

• Main Authors: KADAN, Ohad, MADUREIRA, Leonardo, WANG, Rong, ZACH, Tzachi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Financial analysts; stock recommendations; earnings forecasts; price targets; Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7126; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8125/viewcontent/Analyst_sep5_2023.pdf
• Institution: Singapore Management University

We offer a parsimonious index at the individual analyst level to measure the extent to which an analyst relies on earnings and long-term growth forecasts in producing her advice. Using this index, we evaluate the contribution of earnings and growth forecasts to the investment value of analysts’ stoc...