9Mon·

This morning I had thought about $AFX (-0.74%) this morning. As I had set €55 as the price alert.

Fortunately, I hesitated before the two reports.

I don't pay much attention to analysts' opinions, but they did put me off investing in the near future:

JPMorgan warns against $AFX (-0.74%) Carl Zeiss Meditech

The US bank JPMorgan (JPM) has left its rating for Carl Zeiss Meditech at "Underweight" with a target price of 56 euros.

The shares of the medical technology group Carl Zeiss Meditec are also on "Negative Catalyst Watch" due to the skepticism surrounding the quarterly report in mid-December. The biggest concern remains the outlook for the 2025 financial year, wrote analyst David Adlington in an industry commentary published on Friday. The operating earnings consensus still seems far too optimistic to him. Adlington himself is 12 percent below this.

Goldman lowers target for Carl Zeiss Meditec to 54 euros

The US investment bank Goldman Sachs has lowered its price target for Carl Zeiss Meditec from 63 to 54 euros and left its rating at "Sell". Industry data point to a rather meagre business with refractive lasers in China, wrote analyst Richard Felton in his commentary on Friday. He cut his estimates and pointed out that he is well below the market consensus.

Source: Finance.net

7 Comments

Tenbagger2024@Tenbagger2024

9Mon

However, analysts are much closer to the companies than we small investors.
That's why I wouldn't completely ignore analysts' opinions.

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Marcel@Mcl1991

9Mon

@Tenbagger2024 I also don't understand why many investors here on getquin don't take these analysts' reports seriously.
There must be a reason why banks employ such analysts. Why do they exist if you shouldn't take them so seriously?

So this is a serious question because I would really like to understand it.

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Tenbagger2024@Tenbagger2024

9Mon

The banks also invest in companies themselves and through their products.
To avoid relying on external opinions, they have their own analysts who analyze and monitor the companies.

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ThemenmitKopf@topicswithhead

9Mon

@Tenbagger2024 I don't want to write them off, but what's the point if most analysts are wrong even though they spend their lives analyzing. They also have an incredible number of biases such as positive bias and co. They also don't invest your money. All in all, the analyst brings you much more. They haven't seen Nvidia, they haven't seen Tesla and so much more. Every statistic shows that many people don't find alpha and it's no different with them.

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Tenbagger2024@Tenbagger2024

9Mon

I agree with you.
Analyst opinion is just one tool in the toolbox that you can use for your strategy. But to build a house you need a variety of tools.

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ThemenmitKopf@topicswithhead

9Mon

It probably won't be a good financial year, but you shouldn't rely on analysts' comments. They are always off by more than 50% and this is also reflected in the fact that estimates are changed so often.

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Soprano@Soprano

9Mon

Well, if they set the target price at €54, you can buy at €55 and lose a maximum of €1 lol.

What I'm trying to say is that analysis usually only follows the market. In fact, JP Morgan once gave a negative signal before the price started to fall. As a rule, however, analysts start to downgrade a share AFTER it has fallen and to cheer it AFTER it has risen.

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