Analyst Recommendations Fail to Impact Stock Prices, Investors Beware!
Analysts spend time researching firms to give stock recommendations, but in efficient markets, these recommendations shouldn't affect stock prices. Many investors still rely on analysts for advice, even though the impact on stock prices may be minimal. Investors pay for analyst recommendations hoping to earn more profit, but it's unclear how accurate these recommendations are. Studies on this topic have mainly focused on developed markets like the US, the UK, and others.