GREY:XEBEQ - Post by User
Post by
tamaracktopon Oct 01, 2020 9:59am
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Post# 31648146
On a brighter note
On a brighter note TD's initiation of coverage is the first by any of the Big Banks, and its target is the highest on the street, by far. The other banks are sure to follow, especially Royal. Royal doesn't like being upstaged by TD, its closest competitor.
As well, other research reports we've seen from firms of lesser stature is now rendered obsolete . This TD report essentially gives their analysts free license to raise their targets as well.
As for targets, it is very unusual for a bank to initiate coverage with a target 50% higher than the prevailing stock price. Very very unusual.
I have said here many many times that analysts are restrained in setting targets, and once pointed out that a series of new research that had recently come out all had targets exactly 50% higher than the prevailing stock price at the time. That's no coincidence. Analysts are free to raise their targets at any time. 150% of the prevailing stock price is generally as high as they can go.
Let's hope that 6 months from now, TD raises its target to $15.