In recent trades, shares of J&J Snack Foods Corp. (Symbol: JJSF) broke above analysts’ 12-month average target price of $155.33, changing hands for $157.79/share. When a stock reaches the target that an analyst has set, there are logically two ways for him to react: downgrade on the valuation, or readjust his target price to a higher level. The reaction of analysts may also depend on fundamental business developments that may be responsible for the rise in the stock price – if things are looking up for the company, it may be time for that target price to be raised.
There are 3 different analyst targets in Zacks’ coverage universe that contribute to this average for J&J Snack Foods Corp., but the average is just that – a mathematical average. Some analysts have below average targets, including one looking for a price of $141.00. And then, on the other side of the spectrum, an analyst has a target as high as $165.00. The standard deviation is $12.662.
But the whole reason to watch the medium The goal of JJSF awards in the first place is to tap into a “wisdom of the crowds” effort, bringing together the contributions of all the individual minds that have contributed to the ultimate number, as opposed to what any one particular expert believes. . And so, with JJSF surpassing that average target price of $155.33/share, JJSF investors received a good signal to spend time evaluating the company and deciding for themselves: is 155, $33 is just one stop on the way to a par upper target, or has the valuation been stretched to the point that it’s time to think about removing some chips from the table? Below is a chart showing the current thinking of analysts who cover J&J Snack Foods Corp. :
|Recent JJSF Analyst Rating Breakdown|
|»||Running||1 month ago||2 months ago||3 months ago|
|Strong buy odds:||2||2||2||2|
|Strong selling odds:||0||0||0||0|
The average rating shown in the last row of the table above ranges from 1 to 5, where 1 is strong buying and 5 is strong selling. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on JJSF – FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.