Anal ysing is a very precise and exacting science. 42.5c, 63.75c or 101.2c etc. Extraordinary precision.
Same goes for the time scales. Choose a period between now and ten years hence. Ok maybe not a science, maybe an art?
They go to lunch, look at current stock price, assess (choose) the risk (lo, med, high) talk about the moat, throw in a few overarching gobbledygook comments then add on 20%. Or in some cases they deduct 20%. Bob's your uncle (or maybe auntie depending on the length of the lunch).
Then they stagger back to their chrome and glass palaces, rearrange a few goalposts, add on some extra (unquantified) time and find a few gullible souls who want to buy along with a few who want to sell. A high five/shoulder to cry on, bit of brokerage along the way and everyone is a winner.
And in the back office every previous research note (the ones that got it wrong - which is most of them) is shredded for posterity whilst the electronic versions have been vaporised as best they can.
Don't get me wrong, analysts are great - many of them are friends of mine. Cant figure out how they sleep straight in bed at night though.
ps. you called NEA SP well!
