Q&A by Don Bright
TARGET PRICES: ABSURD?
How do analysts calculate the target price for a stock? — Doanh Nguyen, via e-mail
That is something the world would like to know. There was an interesting 60 Minutes segment called something like “How Did So Many Get It So Wrong?” that showed how ridiculous it is for analysts to pick price targets. The producers even interviewed Mark
Haines of CNBC’s Squawk Box, who went into detail about a few analysts and their absurd predictions.