1 Year Target Estimate?

Question

As a novice investor, the 1 Year Target Estimate seems a good place to start in looking at a company's expected performance. Is it a good idea to invest on this idea? For companies that have been around a while, it seems to make sense to me. Am I way off here?

Answer 1

I would NOT rely on anyone's price targets. Too many factors can change this, and there can be biasness such as the brokerage may have an investment banking relationship with the company.

Technically, there is supposed to be no conflict, but in practice there is.  

Look at the banking sector over the last year. They all have "been around for awhile," and they all have lost 1/2 their stock price.