So @madamswer, you’re saying they’ve applied a higher multiple (than previously) to their upwardly revised forecasts, to calculate their target share price, correct? It does look a bit embarrassing for them, but is there any other way out of the box if the share price runs way ahead of your target and you’re obliged to keep the stock under coverage? If this bothers you, it may bother you further that the change in target price and, by extension, the basis for adjusting it will have been ‘approved’ by (usually) two other 'senior' analysts!
In any case, we could see a few more such ‘valuation catch-up’ reports published in coming months as the Street gets up to speed with reality. Yes, we all know how often analysts get it wrong, but they’ve collectively missed the boat on MND by consistently rating it ‘Underperform’*. It really is looking a bit awkward for them. *Need to be a bit careful here as stock rating definitions can vary quite a bit by broker.
A consensus rating of ‘Outperform’ might constitute a prima facie case to start edging out of the stock.
MND Price at posting:
$19.05 Sentiment: Hold Disclosure: Held
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