Stock prices can fluctuate dramatically when an analyst upgrades and downgrades a stock. Short-term gains can be achieved by investing in such stocks, but investment losses can also occur if analysts misjudge them.
In order to rate companies, analysts typically use three tiers:
“Buy” ratings indicate that analysts believe the stock will outdo the market. Ratings such as overweight and outperform may also be used by analysts.
Hold ratings are assigned to stocks if analysts expect them to perform similarly to the market. It is not recommended to buy or sell stocks with a Hold rating. Market Perform and Equal Weight are other terms used to describe this rating.
Stocks that analysts expect to fall short of the market are labeled as “sells”. Since most analysts give positive ratings to stocks, it is rare for them to give a sell rating. Underweight and Underperform can also be used by analysts when rating a stock “Sell”.
Looking at the support for Lloyds Banking Group PLC (NYSE: LYG), a number of firms have released research notes about the stock. JP Morgan stated their Neutral rating for the stock in a research note on December 06, 2022. RBC Capital Mkts coverage for the Lloyds Banking Group plc (LYG) stock in a research note released on November 25, 2022, offered an Outperform rating. Morgan Stanley was of the view on October 17, 2022, that the stock is Equal-Weight, while BofA Securities gave the stock a Buy rating on April 27, 2022. Barclays on their part issued an Equal Weight rating on April 05, 2022.
The shares of Anavex Life Sciences Corp. (NASDAQ: AVXL) have been pegged with a rating of Neutral by Cantor Fitzgerald in its latest research note that was published on December 06, 2022. The Healthcare company has also assigned an $11 price target. Cantor Fitzgerald wasn’t the only research firm that published a report on Anavex Life Sciences Corp., with other equities research analysts also giving their opinion on the stock. Berenberg advised investors in its research note published on June 23, 2022, to “Buy,” the AVXL stock while also putting a $40 price target. The stock earned a Buy rating from BTIG Research when it published its report on September 23, 2021. That day BTIG Research set a price target on the stock to $35. The stock was given a Buy rating by H.C. Wainwright in its report released on December 16, 2020, the day when the price target on the stock was placed at $17. Ladenburg Thalmann was of the view that AVXL is Buy in its latest report on September 28, 2020. Cantor Fitzgerald thinks that AVXL is worth an Overweight rating. This was contained in the firm’s report on February 27, 2020.
Investment analysts at Morgan Stanley published a research note on December 06, 2022, where it informed investors and clients that The Bank of New York Mellon Corporation (NYSE: BK) is now rated as Underweight. Their price target on the stock stands at $42. Citigroup also rated BK as upgraded on October 04, 2022, with its price target of $46 suggesting that BK could surge by 6.87% from its current share price. Even though the stock has been trading at $44.04/share, analysts expect it to down by -2.72% to reach $42.84/share.