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Suppose you are a junior analyst at a well-known mutual fund corporation (i.e., a buy-side analyst) and are assigned to value, say, the stock of General Electric. You look around at what famous analysts have written and you find one who says that the stock is overpriced at its current price (roughly $33/ share as of June 27, 2006). Another, not surprisingly, thinks that the stock is a strong buy, with a target price of $60. You know you will be asked about these views when you present your results. How might you go about reconciling them? What do you think about the above stock overpriced?

Macroeconomics, Economics

  • Category:- Macroeconomics
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