Free daily briefing on global business news.
Based on the average brokerage recommendation (ABR), Cisco (CSCO) should be added to one's portfolio. Wall Street analysts' overly optimistic recommendations ca
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Cisco $CSCO Systems (CSCO) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Cisco currently has an average brokerage recommendation (ABR) of 1.83, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.83 approximates between Strong Buy and Buy.
