The recent drop in prices of many financial stocks have left consensus analyst price targets well above current market levels. LEH, MER and BSC currently have price targets that are more than 50% above their current prices, while MS and GS aren't far behind. Looking at the 4-week change in EPS estimates for the current quarter, we also see that while investors and the market are lowering their expectations for the group, analysts have been slow to act. Are these analysts expecting a quick recovery or are downgrades soon to come?
Comments