Google (GOOG) is trading higher this morning after its price target was raised by a sell-side firm from $570 to $700. Looking at prior calls by this analyst shows that while they have had a buy on the stock since March 2007, their price target changes haven't exactly been ahead of the curve. The chart below shows GOOG's price and price target from the analyst since March 2007. As shown, practically every bump up in the price target followed a rally in the stock, while every bump down in the price target was preceded by a fall in the stock.
So how has the stock acted following these changes in price target? GOOG's average percent change following the four price target increases was -7.8% over the next month with declines each time. One month after the analyst lowered their price target, the stock was lower two out of three times, but the one time the stock went up, it was up big (+23.1%).
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