Sell-side analysts most useful when most are wrong

SMU Assistant Professor of Finance Roger Loh and economist Professor René M. Stulz, studying analyst reports from 1983 to 2011, concluded that greater uncertainty and career concerns amid recessions and market crisis mean projections are tougher to make and prove less accurate. “While their forecasts are less accurate during bad times, analysts are more active and their forecast and recommendation revisions are more influential,” said Assistant Prof Loh.

Source
Other
Financial Advisor Magazine