Equity analysts make recommendations on shares—typically, a ‘buy’, ‘hold’ or ‘sell’—to their clients based on a company’s expected earnings performance, its prevailing stock price as well as market conditions. For a retail investor, the ratings can be a good starting point, though some caveats need to be considered.
The analysts may be part of investment banks that have business deals with the firms they are rating—the so-called Chinese walls between the research and banking divisions aren’t always non-porous and there could be conflict of interests. Mint presents Bloomberg’s rating of the top 500 stocks on the BSE as on 7 August.
Click here to check out stocks with the highest and lowest analyst rating