How Are Average Rating & 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 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: Buy, Overweight, Hold, Underweight, and Sell. Then, a score of between 1 and 3 is attributed to each category according to the table below:
Broker recommendation
Action/Score
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
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 it evolved in the last 6 months and an indicator will highlight any upgrade or downgrade in the last 7 days.
Target price Implied return
Target price is the average of brokers’ estimates. Implied return conveys its distance vs the current price.