Skip to main content
Journal cover image

An Empirical Analysis of Analysts' Target Prices: Short-term Informativeness and Long-term Dynamics

Publication ,  Journal Article
Brav, A; Lehavy, R
Published in: Journal of Finance
January 1, 2003

Using a large database of analysts' target prices issued over the period 1997-1999, we examine short-term market reactions to target price revisions and long-term comovement of target and stock prices. We find a significant market reaction to the information contained in analysts' target prices, both unconditionally and conditional on contemporaneously issued stock recommendation and earnings forecast revisions. Using a cointegration approach, we analyze the long-term behavior of market and target prices. We find that, on average, the one-year-ahead target price is 28 percent higher than the current market price.

Duke Scholars

Altmetric Attention Stats
Dimensions Citation Stats

Published In

Journal of Finance

DOI

ISSN

0022-1082

Publication Date

January 1, 2003

Volume

58

Issue

5

Start / End Page

1933 / 1968

Related Subject Headings

  • Finance
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1502 Banking, Finance and Investment
 

Citation

APA
Chicago
ICMJE
MLA
NLM
Brav, A., & Lehavy, R. (2003). An Empirical Analysis of Analysts' Target Prices: Short-term Informativeness and Long-term Dynamics. Journal of Finance, 58(5), 1933–1968. https://doi.org/10.1111/1540-6261.00593
Brav, A., and R. Lehavy. “An Empirical Analysis of Analysts' Target Prices: Short-term Informativeness and Long-term Dynamics.” Journal of Finance 58, no. 5 (January 1, 2003): 1933–68. https://doi.org/10.1111/1540-6261.00593.
Brav A, Lehavy R. An Empirical Analysis of Analysts' Target Prices: Short-term Informativeness and Long-term Dynamics. Journal of Finance. 2003 Jan 1;58(5):1933–68.
Brav, A., and R. Lehavy. “An Empirical Analysis of Analysts' Target Prices: Short-term Informativeness and Long-term Dynamics.” Journal of Finance, vol. 58, no. 5, Jan. 2003, pp. 1933–68. Scopus, doi:10.1111/1540-6261.00593.
Brav A, Lehavy R. An Empirical Analysis of Analysts' Target Prices: Short-term Informativeness and Long-term Dynamics. Journal of Finance. 2003 Jan 1;58(5):1933–1968.
Journal cover image

Published In

Journal of Finance

DOI

ISSN

0022-1082

Publication Date

January 1, 2003

Volume

58

Issue

5

Start / End Page

1933 / 1968

Related Subject Headings

  • Finance
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1502 Banking, Finance and Investment