Reviewing the news with regard to the analyst's recommendations is interesting. On 8/16/96, Daniel Kunstler of JP Morgan downgraded RSYS when the price was about 40 and may have contributed to a temporary dip in price to 33, but then RSYS resumed it's uptrend quickly. On 9/17 Jensen Securities downgraded RSYS from "outperform" to "neutral" and it had no effect on the price which was then around 57. Then, RSYS hit an all time high at 74 1/2 on 10/27... Those who follow Jensens's advice and sold missed out on 17 points. Then, on 10/29, Jensen Securities cuts its "neutral" to "underperform". To quote the former Chairman of Merryl Lynch, Donald Regan, "Even a stopped clock gets the time right twice a day". Now, on 11/26, we have JP Morgan come in with an upgrade to "buy" from "market outperfrom" at the price of 43 1/8.
It make you wonder if the analysts know what's happening with RSYS, doesn't it. Nonetheless, a "buy" recommendation is significant. It means that the analyst expects a 20% increase in the price from the price on the date of the recommendation, thus the target of 52 from JP Morgan.
Alex |
