Recently, shares of Cheesecake Factory Inc. (Symbol: CAKE) moved above the average analyst 12-month target price of $50.22, trading at $51.79 per share. Once a stock hits its target, analysts typically have two options: either lower their valuation or raise their target price. Their decision often hinges on the company’s performance and future prospects; if things are improving for Cheesecake Factory, an upward revision may be warranted.
Understanding Analyst Targets
Currently, 18 different analysts contribute to the average target price for Cheesecake Factory. While the average is $50.22, individual targets vary. For instance, one analyst predicts a price of $37.00, while another sets an ambitious target at $65.00. The standard deviation among these targets stands at $7.81, indicating a wide range of opinions.
The Wisdom of Many vs. Individual Opinions
The average price target reflects a collective assessment, melding insights from various experts rather than relying on just one person’s forecast. With CAKE trading above the average target, investors might consider whether $50.22 is merely a stepping stone towards a higher price or if the stock is overvalued, prompting a reevaluation of their positions. Below is a table detailing the analysts’ current ratings for Cheesecake Factory Inc.:
| Recent CAKE Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 9 | 8 | 7 | 7 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 5 | 6 | 6 | 6 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 4 | 4 | 4 | 4 |
| Average rating: | 2.38 | 2.49 | 2.57 | 2.57 |
The average rating on this table uses a scale from 1 to 5, where 1 represents a Strong Buy and 5 represents a Strong Sell. This data is sourced from Zacks Investment Research via Quandl.com. For the latest research report on CAKE, visit Zacks.
10 ETFs With Most Upside To Analyst Targets »
Additional Insights:
• ICLK Average Annual Return
• Top Ten Hedge Funds Holding MGI
• HOMB Dividend History
The views and opinions expressed herein are those of the author, and do not necessarily reflect the views of Nasdaq, Inc.
