Do Financial Analysts’ Forecasts About Market Quatations Prove to Be Correct? Evidence from Russia

Abstract

The accuracy of financial analysts’ forecasts and recommendations is a key factor for the efficient operation of stock market. In order to determine if these predictions prove to be correct, 2783 recommendations about the stock prices of 9 Russian blue chip companies have been analyzed. According to the research it is concluded that the analytical recommendations mostly work well, and also the proportion of deviation predicted from the real stock prices has been determined. It has been also defined that the forecast accuracy differs in the types of recommendations and public companies. Influence of the last global financial crisis on the types and accuracy of given recommendations is considered.

Keywords: financial analysts, recommendations, forecasts, market quotations, stock market

JEL Classification: G24