Analyst ratings & price targets
What buy/hold/sell, upgrades, and targets do (and don't) tell you.
Sell-side analysts at banks and brokerages publish ratings (e.g. buy / hold / sell or overweight / neutral / underweight) and 12-month price targets on the stocks they cover.
What moves the stock
It's usually the change, not the level: an upgrade, a downgrade, or a big target revision. Initiations of coverage by a respected firm can also matter, especially for small caps with little coverage.
Reading them with care
- Consensus is the average view; a wide gap between price and target implies upside — but targets are frequently wrong.
- More analysts covering a name generally means a more efficient (harder-to-surprise) stock.
- Treat ratings as one input, not a verdict.
Educational only — not financial advice.