RT Journal Article
SR Electronic
T1 Analysts’ Earnings Forecast, Recommendation,<br/>and Target Price Revisions
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP 120
OP 132
DO 10.3905/jpm.2012.38.3.120
VO 38
IS 3
A1 Ronen Feldman
A1 Joshua Livnat
A1 Yuan Zhang
YR 2012
UL https://pm-research.com/content/38/3/120.abstract
AB This study examines the immediate and delayed market responses to revisions in analyst forecasts of earnings, target prices, and recommendations. Consistent with prior literature, revisions in earnings forecasts are positively and significantly associated with short-term market returns around the revisions. However, Feldman, Livnat, and Zhang show that short-term market returns around target price revisions and recommendation changes are even stronger. They also find superior future performance (return drift) for portfolios that use information from all three types of revisions to those using information from only one of the three types of revisions.TOPICS: Exchanges/markets/clearinghouses, technical analysis, in markets