Analyst's predictive abilitiesAnalysts generally work with a 12 month target. They do exhaustive research on the companies they follow and based on that make their predictions. Let's see how well National Bank did on the Harry Winston research in the last 12 months.
| HW (T) $25.12; US$25.46 Stock Rating: Sector Perform - (Unchanged) Target: US$34.00 - (Unchanged) Risk Rating: Above Average - (Unchanged) Diavik did not replace reserves this year; in line with our expectation and the capital cost announced in the new mine plan is also in line with previous estimates. We had expected mining costs to increase overall as we shift from open pit mining to underground, however, sustaining capital is higher then we had modelled. The valuation of the pipes has also been updated showing better values for 2 pipes (lower for another) than anticipated. Our model will be updated once year-end numbers are reported at month end. We currently rate HW a Sector Perform with a US$34/sh target. |
Oops! they missed that by only 90%. Now that the stock is trading at $3.50, it's kind of embarrasing, so they need to change their target to - guess what? $3.50!!! Well at least they'll be right for a few minutes today. Seriously, if you want to make an educated bet - do your own work. These guys are no better than you or me at predicting the future.