So called Wall Street Strategist change target

2/25/09

The following is posted by Bespoke.

Strategist Price Targets: Credit Suisse is the First to Budge

Bloomberg tracks the S&P 500 price targets of the major Wall Street strategists in a weekly survey. This week, Credit Suisse was the first firm to lower its year-end price target this year, even as the market has already declined by 17%. As shown below, Credit Suisse lowered its price target from 1,050 to 920. At the start of the year, the average year-end price target suggested a gain of 16.2% for the S&P 500. Only one firm, Barclays, had a price target that suggested the index would decline for the year. With the S&P 500 down roughly 17% year to date and only one strategist lowering year-end estimates, the average strategist is now looking for a gain of 36% from current levels. Either the index has a lot of catching up to do, or strategists are going to have to once again start lowering estimates just like they did in 2008.

My comment: Are they know what model they use to forecast?!! Why those so called experts would keep changing their year end target ?? Do they have any technical knowledge behalf their forecast??! Well, look like more strategists will lower their target soon.