PriceTagets understanding

Andrey Chuchev
Andrey Chuchev Explorer
in TRKD

Hello.

We want to use your TRKD api for reciving price targets, GetRecommendationSummaries method. https://www.trkd.thomsonreuters.com/SupportSite/TestApi/Op?svc=EstimatesIBES_1&op=GetRecommendationSummaries_1

And we faced problem with understanding it.

On what date does this price argets apply?


For example, for MSFT you send us mean price target 194.19

How to interpret it, what does it mean? Could not find information in your developer guide.

<Symbol>

<Type>Ric</Type>

<Value>MSFT.O</Value>

</Symbol>

<PriceTarget>

<CurrencyCode>USD</CurrencyCode>

<UnverifiedMean>194.37500000</UnverifiedMean>

<PreliminaryMean>194.19354839</PreliminaryMean>

<Mean>194.19354839</Mean>

<High>212.00000000</High>

<Low>133.00000000</Low>

<NumberOfEstimates>31</NumberOfEstimates>

<Median>200.00000000</Median>

<StandardDeviation>16.40410387</StandardDeviation>

</PriceTarget>


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Best Answer

  • Muzammil.Sharief
    Muzammil.Sharief LSEG
    Answer ✓

    The current methodology is as follows:
    1. When analysts submit their price target they do not specify a date but instead specify a horizon, 12 months for example.
    2. When computing for the mean we only include price targets which have been tagged as 12 month horizon.
    3. These price targets will be included in the mean calculation until their horizon has lapsed.
    4. The expiry date is based on the date of last revision, so for example an analyst submits a target with a 12 month horizon today, 12/7/2016, then the expiry will be on 12/8/2017.

    This would imply that the mean price target is composed of price targets which initially had a 12 month horizon.
    However, the price targets that compose the mean actually have varying periods.

    For reference, please see illustration below;


    image


    Analysts A, B, C, D, E above all submitted 12 month horizon price targets, however their actual 12 month horizons are different.
    As of date X, the price targets for analysts A, B, C, D, and E will be included in the mean calculation




    Median is the value situated in the middle of the consensus. Auto calculated in the product as well.

Answers

  • Muzammil.Sharief
    Muzammil.Sharief LSEG

    HI @Andrey Chuchev,


    The GetRecommendationSummaries_1 request is used to retrieve recommendation and price target summaries for a given symbol like MSFT.O.


    The service provides summary of price target given by analyst/contributors with fields like number of analyst who have given price targets, mean, median values and date range of 1 week ago, 30, 60 and 90 days ago.


    Thanks

    Muzammil

  • Andrey Chuchev
    Andrey Chuchev Explorer

    Thats ok. But we dont understand what price target mean value means.

    Lets see example above:

    for symbol MSFT.O analysts say that mean price target is 194.19354839

    When according to analysts MSFT.O price will be 194.19354839 ?

  • Andrey Chuchev
    Andrey Chuchev Explorer

    Is there any information about this issue?

  • Andrey Chuchev
    Andrey Chuchev Explorer

    Is there any updates?

  • wasin.w
    wasin.w admin

    Hello @Andrey Chuchev

    Sorry for the late reply, please find the answer from the Content team below:

    Price Target Mean is a simple Average of all the price targets provided by the brokers. $228.706 is an average of 31 Price targets.

    image

    Question: For symbol MSFT.O analysts say that mean price target is 194.19354839, when according to analysts MSFT.O price will be 194.19354839 ?

    Answer: Yes, the price in next 12 months would be 195.193. This is an estimate/a prediction made by the number of analysts and then derived the mean.


    If you have further data meaning or content question, you can contact the content support team directly via http://my.refinitiv.com/ web site.

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