In recent trading, shares of Banco de Chile (Symbol: BCH) have crossed above the average analyst 12-month target price of $23.25, changing hands for $23.39/share. When a stock reaches the target set by an analyst, that analyst has two logical options: downgrade the stock’s valuation or adjust the target price higher. Their response may vary based on company developments that could be influencing the stock’s upward movement. If the company is performing well, a target price increase might be warranted.
Within the Zacks coverage universe, there are four different analyst targets that contribute to the average for Banco de Chile. However, the average is simply a mathematical calculation. Some analysts have lower targets, including one predicting a price of $21.00, while another is more optimistic with a target as high as $25.00. The standard deviation among these targets is $1.707.
The reason behind examining the average BCH price target is to harness a “wisdom of crowds” approach, combining insights from several analysts rather than relying on a single expert’s opinion. Now that BCH has moved above the average target price of $23.25/share, investors might consider reassessing the company. Is this price merely a waypoint towards a higher target, or has the stock become overly valued, warranting a reevaluation of their investment? Below is a table showing the current sentiment from analysts covering Banco de Chile:
| Recent BCH Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 0 | 0 | 0 | 0 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 4 | 4 | 4 | 4 |
| Sell ratings: | 1 | 1 | 1 | 1 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 3.2 | 3.2 | 3.2 | 3.2 |
The average rating in the table above ranges from 1 (Strong Buy) to 5 (Strong Sell). This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on BCH — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
Also see:
Utilities Stocks Hedge Funds Are Buying
MRKT Videos
GRPH Stock Predictions
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
