Reliability of Investment Recommendations

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F49777513%3A23510%2F19%3A43956238" target="_blank" >RIV/49777513:23510/19:43956238 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Reliability of Investment Recommendations

Original language description

This article deals with the reliability of investment recommendations for selected companies traded on the Prague Stock Exchange. Stock analysts issue investment recommendations and set the so-called target share prices. The target price of a share is an intrinsic value of the share that has been determined by fundamental analysis. The market price of the share should reach exactly this value within one year. The investor should therefore buy (sell) such shares where there is a sufficiently large difference between the intrinsic value and the current market price in favour of the intrinsic value (in favour of the market price). The article aims to evaluate the overall reliability or, more precisely, the accuracy of investment recommendations. The target share price to be reached within one year has been compared with the development of its market price for every published investment recommendation. If the market price of the share has reached its target price within one year, the investment recommendation can be considered as a successful one and vice versa. The investment recommendations were analysed for the six-year period, from the beginning of 2012 until the end of 2017. The data were taken from the database of Patria a.s. The analysis has shown that investing based on investment recommendations does not yield good results.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2019

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Proceedings of the 16th International Scientific Conference

ISBN

978-80-210-9337-9

ISSN

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e-ISSN

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Number of pages

9

Pages from-to

471-479

Publisher name

Masarykova univerzita

Place of publication

Brno

Event location

Brno

Event date

Jun 24, 2019

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

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