Trading recommendations from company analysts can offer a glimpse of what the experts think the future holds. Their 'buy', 'hold' and 'sell' ratings reflect their views about the likely future performance of the stocks they cover - and how the share prices will move as a result.
For investors, these kinds of 'smart money' signals can be a useful consideration when it comes to deciding whether to buy or sell a stock...
Take China Overseas Land & Investment (HKG:688) as an example. Shares in the company have risen by 8.77% over the past month and they are currently trading at HK$24.8. But what do the analysts that cover the company think?
Based on the broker 'consensus', there could be reasons to believe that the positive recent trend will continue. In terms of trading recommendations, China Overseas Land & Investment currently has:
10 Buy recommendations
1 Hold recommendations
0 Sell recommendations
This suggests that analysts are generally upbeat about the outlook.
While analyst forecasts can be a useful guide to what City 'experts' think about a stock's near term future, they can be unreliable. To get a better idea about the strengths and weaknesses of China Overseas Land & Investment it's worth doing some investigation yourself. Indeed, we've identified some areas of concern with China Overseas Land & Investment that you can find out about here.