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Extracting information from European analyst forecasts

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  • Andrea S Au

    (State Street Global Advisors)

Abstract

The impact of analyst forecasts is undeniable. However, previous research on analyst factors yields either event strategies that are unimplementable or consensus strategies whose effectiveness has diminished. My analysis looks at independent and combined effectiveness of consensus, dispersion, and an untested revision measure for earnings, recommendations, and price targets in the European market. My results suggest that investors designing an analyst trading strategy should look beyond earnings or recommendations alone and include measures other than simple consensus.

Suggested Citation

  • Andrea S Au, 2007. "Extracting information from European analyst forecasts," Journal of Asset Management, Palgrave Macmillan, vol. 8(4), pages 228-237, November.
    • Handle: RePEc:pal:assmgt:v:8:y:2007:i:4:d:10.1057_palgrave.jam.2250076
    DOI: 10.1057/palgrave.jam.2250076
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