Trade recommendations from company analysts can provide insight into what experts think the future holds. Their ‘buy’, ‘hold’ and ‘sell’ ratings reflect their views on the likely future performance of the stocks they are covering – and how stock prices will move accordingly.
For investors, these types of “smart money” signals can be a useful consideration when deciding whether to buy or sell a stock…
To take Reckitt Benckiser (LON:RKT) for example. The company’s shares are up 1.05% over the past month and are currently trading at 5,950p. But what do the analysts who cover the company think?
Based on the “consensus” of brokers, there may be reason to believe that the recent positive trend will continue. In terms of trading recommendations, Reckitt Benckiser currently has:
- 5 To buy recommendations
- 3 Hold recommendations
- 2 To sell recommendations
This suggests that analysts are generally optimistic on the outlook.
At its current price of 5,950p, shares of Reckitt Benckiser are trading at a -12.7% discount to its 52-week high. The 1-year performance of the share was -11.3%.
While analyst forecasts can be a useful guide to what City ‘experts’ think of a stock’s short-term future, they can be unreliable. To get a better idea of Reckitt Benckiser’s strengths and weaknesses, it’s worth doing some research for yourself. Indeed, we have identified some areas of concern with Reckitt Benckiser which you can read about here.
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