How Are Average Rating & Target Price Calculated?

How Are Average Rating and Target Price Calculated?

These metrics are provided by Factset and based on broker recommendations received over the past 100 days. If a broker has issued multiple recommendations during this period, only the most recent is retained.

Broker Ratings Breakdown: Broker ratings fall into five broad categories: 1) Buy, 2) Overweight, 3) Hold, 4) Underweight, and 5) Sell. Each category is assigned a score between 1 and 3, following a structured evaluation system.

Average Rating: Broker ratings are divided into five broad categories: 1) Buy, 2) Overweight, 3) Hold, 4) Underweight, and 5) Sell. Then, a score between 1 and 3 is attributed to each category according to the list below:

• Buy: 1
• Overweight: 1.5
• Hold: 2
• Underweight: 2.5
• Sell: 3

The above broker rating contributions are aggregated and averaged according to the table below to determine the Average rating:

• Average Score <1.25: Buy
• 1.25 ≤ Average Score < 1.75: Overweight
• 1.75 ≤ Average Score < 2.25: Hold
• 2.25 ≤ Average Score < 2.75: Underweight
• 2.75 ≤ Average Score ≤ 3: Sell

Average rating history shows how the rating evolved in the past six months, and an indicator will highlight any upgrade or downgrade in the past seven days.

Target price Implied return: Target price is the average of brokers’ estimates. Implied return conveys its distance vs the current price.