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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Marco Vincenzo who wrote (78977)	1/21/2026 1:07:43 PM
From: Elroy	Read Replies (1) \| Respond to of 79146

When we see analysts' earnings forecast for a firm, are we seeing the earnings forecast as the required rate of return or are they implementing satisfactory residual earnings levels to it also? Or is it totally independent from those two factors? Because if it is, then if the forecasts were below the cost of capital and the firm end up beating those forecasts, they could be simply earning the cost of capital without adding value to the firm, which even though is beating forecasts, it could be positive from what analysts expected but when it comes to the firm's performance it is not, right? You got it!

To: Marco Vincenzo who wrote (78977)	1/21/2026 3:11:05 PM
From: S. maltophilia	1 Recommendation Recommended By E_K_S Read Replies (1) \| Respond to of 79146

analysts' earnings forecast Take them for what they're worth. Those guys aren't working for you. It's not as bad as it was decades ago when information was hard to come by, but it's always better to do your own DD. Various services, e.g. TIKR app.tikr.com and seekingalpha.com have plenty of data. The free versions are useful. And get handy with sec.gov, where most of the bodies are buried.

To: Marco Vincenzo who wrote (78977)	1/21/2026 11:27:35 PM
From: Madharry	1 Recommendation Recommended By Harshu Vyas Respond to of 79146

To be fair I dont understand the question. But my 2 cents here is that analysts take different approaches. the good ones usually explain how they arrive at their price targets be it a multiple of projected earnings, free cash flow , or a discounted cash flow model, Some predict a take out valuation based upon what other companies have gone for in the space. Some just move the price up because the price of the shares have gone up and they want to keep it at a buy or strong buy, I fully expect to see analysts increase their price targets for Micron soon. According to Gemini 90% of analysts have current buys on the stock . January price targets for 4 analysts were $450 $450 $360 and $385. Stock closed $392 I believe. I doubt those two in the 300s won;t up their price targets soon.