Are analysts mentally disabled?

Discussion in 'Trading' started by blast19, Mar 28, 2007.

  1. blast19


    I'm just looking at a new estimate on LEN that JMPS made. They think they'll make between $2-2.40 in 2007 and $3.15-3.50 in an industry that is clearly ailing and full of woes right now...their target price is lowered from $58 to $52!

    What in the world makes them give them a ridiculous multiple like 20-26 times in an industry that's about to take a HUGE hit!?

    I'd have to say they're doing it due to inside interest in their firms. I'm guessing that's what the majority of you guys think.

    But I still want to hear. cheers. :)