Analysts’ opinions of stock can sometimes lead to large swings in stock prices if they upgrade or downgrade it. Investing in such stocks can present investors with short-term gains, but the analyst can also be wrong about the stock and hurt investors.
A three-tiered rating system is commonly used by analysts:
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Stocks are viewed as a “Buy” when analysts believe they will outperform the market or their peers and recommend that investors should invest in them. There are other terms analysts might use for this rating, such as overweight and outperform.
Analysts rate a stock as a “Hold” if they expect it to perform no differently than the market as a whole. Hold ratings don’t suggest buying or selling the stock. Market Perform and Equal Weight are also used by analysts for this rating.
In an analyst’s opinion, a stock is a Sell if it is expected to underperform the market and should be sold. It is rare for analysts to give a sell rating to a stock since most analysts are generally positive about it. In addition, Underweight and Underweight are also sometimes used by the analyst for this rating.
On November 30, 2022, several analysts upgraded their positions on the Avadel Pharmaceuticals plc (AVDL) stock and predicted its performance to their investors. The analysts at Jefferies believe AVDL is still a Buy and set the price target between $6.50 and $11. Another analyst that has a Hold rating for AVDL is Jefferies, which set a price target of between $6 and $8. Craig Hallum resumed their Buy position on the stock ($15.50 and $12) and Stifel downgraded their Hold position on the stock ($9 and $2).
The shares of The Cooper Companies Inc. (NYSE: COO) have been pegged with a rating of Outperform by Robert W. Baird in its latest research note that was published on November 30, 2022. The Healthcare company has also assigned a $375 price target. Robert W. Baird wasn’t the only research firm that published a report on The Cooper Companies Inc., with other equities research analysts also giving their opinion on the stock. Jefferies advised investors in its research note published on October 12, 2022, to “a Hold,” the coo stock while also putting a $295 price target. The stock had earned a Sector Weight rating from KeyBanc Capital Markets when it published its report on August 29, 2022. The stock was given a Buy rating by Citigroup in its report released on May 17, 2022, the day when the price target on the stock was placed at $405. Needham was of the view that coo is Held in its latest report on April 08, 2022. Guggenheim thinks that coo is worth a Buy rating. This was contained in the firm’s report on January 03, 2022.
Investment analysts at Cantor Fitzgerald published a research note on November 30, 2022, where it informed investors and clients that SoundHound AI Inc. (NASDAQ: SOUN) is now rated as Overweight. Cantor Fitzgerald also rated SOUN as initiated on July 01, 2022, with its price target of $3 suggesting that SOUN could surge by 57.33% from its current share price. Even though the stock has been trading at $1.32/share, analysts expect it to down by -3.03% to reach $1.28/share.
