Stock return dynamics after analyst recommendation revisions
Stock return dynamics after analyst recommendation revisions
The study explores the correlation between the immediate and the longer-term stock returns following analyst recommendation revisions. In line with previous studies, documenting that recommendation revisions are followed by significant stock price drifts , I suggest that if a recommendation revision is followed by a relatively large short-term stock price drift, then it may indicate that the new information is more completely reflected by the respective stock's price, creating significantly less