Why do price targets released by finance institutions on stocks matter?
In: Economics
These institutions are considered industry experts, so them saying a company will be at $X price is essentially an expert telling the world what the future will be and people can use that information to choose how to invest their money. Wouldn’t it it be awesome if someone simply told you what the future price of a stock will be? Think of the money you can make! They are literally trying to predict the future.
Now, whether or not these people are actually “experts”, and how often they get it right or wrong would be a whole different story and question.
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