Five New Ratings, Three Neutrals, One Downgrade, Two Outperform
LINN Energy downgraded to Neutral from Outperform at Credit Suisse
Credit Suisse downgraded LINN Energy based on expectations for continued low NGL prices and unhedged natural gas liquids. Price target lowered to $40 from $41.
LINN Energy initiated with a Neutral at BofA/Merrill
LINN Energy reinstated with an Overweight at Barclays
LINN Energy initiated with a Neutral at Goldman
LINN Energy initiated with an Outperform at RW Baird
I don't think you can call the the Credit Suisse report a downgrade. Their rating went from Restricted to Neutral. LINE has been rated Restricted by CS for a while. It's been a while since they had LINE at Outperform. And they've had a $ 40 price target throughout November, at least.
And CS also came out with a similar rating on LNCO, which is what I own. They made a big mistake about taxation of LINE. I think that mistake overstated the appropriate LNCO/LINE discount.
I love this post. It's a great comment on the trustworthiness of analysts' forecasting. It's disheartening to consider that analysts make vastly more money than, as one example of many, good third-grade teachers, whose contributions to society are light years beyond those of the stock prognosticators who may as well flip coins for a living.
Fact is the analysts create an efficient market which only a hand full of pros can beat. This means our generally efficient capital markets allocate our savings to the highest return economic investments. Driving long term efficiency and rising incomes in a full employment economy.
So once again we have an OLB member posting all the analysts opinions as content and then attacking it.
How analysts consensus estimates drive market efficiency is why passive index funds work.
But the OLB are not capitalists but collectivist in laughably absurd costumes.
Individual Investors can beat the 'analysts' following Graham and Dodd methods with a long term investment horizon.