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?
Let's take a look at what these Wall Street heavyweights have to say about e.l.f. Beauty (ELF) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
e.l.f. Beauty currently has an average brokerage recommendation (ABR) of 1.69, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 18 brokerage firms. An ABR of 1.69 approximates between Strong Buy and Buy.
Of the 18 recommendations that derive the current ABR, 11 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 61.1% and 5.6% of all recommendations.
Check price target & stock forecast for e.l.f. Beauty here>>>
