Here is how city analysts rate Smart Metering Systems

When it comes to researching shares, many investors take note of what city analysts have to say. The trading recommendations of these professionals are used by everyone from institutional fund managers to individual private investors. The reason is that these analysts know about the stocks they cover more than just about anybody else.

For investors, these kinds of recommendations can be a useful consideration - especially when you listen to the consensus view of all the analysts that cover a stock.

Take Smart Metering Systems (LON:SMS) as an example. Shares in the company have risen by 2.53% over the past month and they are currently trading at 852p. 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, Smart Metering Systems currently has:

• 3 Buy recommendations

• 1 Hold recommendations

• 0 Sell recommendations

This suggests that analysts are generally upbeat about the outlook.

At its current price of 852p, shares in Smart Metering Systems are trading at a discount of -17.9% to its 52 week high price. The 1-year performance of the shares has been 1.31%.

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 Smart Metering Systems it's worth doing some investigation yourself. Indeed, we've identified some areas of concern with Smart Metering Systems that you can find out about here.