When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Okta (OKTA).
Okta currently has an average brokerage recommendation (ABR) of 1.60, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 43 brokerage firms. An ABR of 1.60 approximates between Strong Buy and Buy.
Of the 43 recommendations that derive the current ABR, 29 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 67.4% and 7% of all recommendations.
Check price target & stock forecast for Okta here>>>