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Andrey Chuchev avatar image
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PriceTagets understanding

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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pimchaya.wongrukun01 avatar image   pimchaya.wongrukun01

Contacted Onlinesolutions@refinitiv.com

veerapath.rungruengrayubkul avatar image   veerapath.rungruengrayubkul

Hi @achuchev,

Thank you for your participation in the forum. Is the reply below satisfactory in resolving your query?

If yes, please click the 'Accept' text next to the reply. This will guide all community members who have a similar question. Otherwise please post again offering further insight into your question.

Thanks,

AHS

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Please be informed that a reply has been verified as correct in answering the question, and has been marked as such.

Thanks,


AHS


wasin.w avatar image   wasin.w

<AHS>

Contacted Onlinesolutions@refinitiv.com to help the client on the follow up question.

6 Answers

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Muzammil.Sharief avatar image
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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;



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.


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Muzammil.Sharief avatar image
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HI @achuchev,


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

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Andrey Chuchev avatar image
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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 ?

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Andrey Chuchev avatar image
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Is there any information about this issue?

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Andrey Chuchev avatar image
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Is there any updates?

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wasin.w avatar image
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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.

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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