How Do Analysts Use Their Earnings Forecasts in Generating Stock Recommendations

By Mark Bradshaw. 2001

534 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/c09d3fb2165dc6fc3a95b82222065e0079c3f517

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Citations in the corpus

Inside the 'Black Box' of Sell-Side Financial Analysts (2014, unknown): “For example, analysts indicate they use P/E and PEG models for valuation purposes rather than more sophisticated models, such as residual income models (Bradshaw, 2004).”
The incumbent discount: Stock market categories and response to radical technological change (2007, background): “Analysts tend to specialize in a single industry and use similar metrics and heuristics, such as price/earnings ratios, for valuing the stocks within the category ( Bradshaw, 2004; Moreton & Zenger, 2005; Schipper, 1991; Zuckerman, 1999).”
Do accurate earnings forecasts facilitate superior investment recommendations (2006, unknown): “11 Bradshaw (2002), for example, assumes that analysts use the residual income valuation model, and Cornell (2001) assumes that they use the discounted cash flow model.”
THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON INVESTMENT RECOMMENDATIONS. (2010, unknown): “More importantly, in these reports analysts include investment recommendations in the form of “strong buy”, “buy”, “hold”, “underperform” or “sell” (e.g. Schipper, 1991; Bradshaw, 2004).”
The Use of Target Prices to Justify Sell-Side Analysts' Stock Recommendations (2002, unknown): “However, Bradshaw (2001) uses analysts’ earnings forecasts as inputs into a residual income model, and finds that resulting valuations are unable to explain the associated stock recommendations, despite evidence that these valuations identify mispriced stocks (Frankel and Lee 1998).”
Do Non-Investment Bank Analysts Make Better Earnings Forecasts? (2008, background): “Notable evidence includes Francis and Soffer (1997), who report that earnings forecast revisions have price informativeness incremental to changes in recommendations, and Bradshaw (2004), who reports that investors would earn higher returns relying on present value models that incorporate analysts’ ”
Do Analysts Practice What They Preach and Should Investors Listen? Effects of Recent Regulations (2009, unknown): “…(decreased) following Reg FD. 27 Standard errors are multiplied by an adjustment factor, (1 ) 2 (1 ) 2 (1 ) (1 ) n n + Φ Φ − Φ − − Φ − Φ , where n is the number of months and Φ is the first-order autocorrelation of the monthly coefficient estimates (Abarbanell and Bernard 2000; Bradshaw 2004).”
Does Valuation Model Choice Affect Target Price Accuracy? (2010, unknown): “As part of their study, they follow Bradshaw (2004) , and input analyst earnings forecasts to price-to-earnings-growth (PEG) and residual income valuation (RIV) models to generate pseudo -target prices.”