Analyst Price TargetsIMO the big problem with target prices is that the number they land on is based on data which is not dynamic, so static info which is really a snap shot in time of a company and by extension the industry they are in. I think all they do in general is affect the psychology of the investor.
If you follow BNN market call, take a look at the Past Picks and see how many have been good targets and how many have been bad in these difficult markets. In a good market even the turkeys fly but in volatile markets, it is not the same. What I like about the O&G industry is that the guidance they provide is based on a commodity price keeping in mind that there are other risks like getting supply to market, protests, shutdowns. That said there are several self serving experts we all know about calling for $100 or higher oil and of course they don't really know because there are too many variables. It is up to us as investors to find companies with the best management who have the best BoDs who will thrive in good markets and survive in the worst markets.