(Add ) Stock recommendations

[phoenix_n]

Quick question....

How does ADD differ to BUY ?

Tnks.

 

[Guest126]

It is a weaker recommendation than "buy", but it is a stronger rating than "hold".

 

[Sunny]

Depends on the broker or analyst using it but generally an add recommendation would mean a projected possible return of between 5 and 15% while a buy recommendation would mean a possible return of greater than 15%. As mentioned above, A buy is just a stronger recommendation than add

 

[vipera1]

Got the following description from Goodbodys. Recommendations may be different for other brokers.

"GSB uses the terms “buy”, “add”, “reduce” and “sell”. The term “buy” means that the analyst expects the security to appreciate in excess of 15% over a twelve month period. The term “add” means that
the analyst expects the security to appreciate by up to 15% over a twelve month period. The term “reduce” means that the analyst expects the security to decline by up to 15% over the next twelve
months. The term “sell” means that the security is expected to decline by in excess of 15% over the next twelve months. In the event that a stock is delisted the firm will automatically cease coverage. If
however the firm ceases to cover a stock for any other reason the firm will disclose this fact"​

 

[JohnBoy]

rating systems differ accross firms but you ought to treat all broker research with a degree of caution as much of it is biased and an additional proportion of broker research is either flawed or inaccurate.

also bear in mind that there are not nearly enough sell recommendations out there either. brokers need access to companies in order to produce the research in the first place and that often encourages analysts to generate more optimistic earnings reports lest contact with the company is curtailed. moreover, the corporate advisory business of any broker is normally a lot more lucrative than the old fashioned broking activities and this tends to put further pressure on analysts to 'acceptable' research.

 

[Humpback]

rating systems differ accross firms but you ought to treat all broker research with a degree of caution as much of it is biased and an additional proportion of broker research is either flawed or inaccurate.

also bear in mind that there are not nearly enough sell recommendations out there either. brokers need access to companies in order to produce the research in the first place and that often encourages analysts to generate more optimistic earnings reports lest contact with the company is curtailed. moreover, the corporate advisory business of any broker is normally a lot more lucrative than the old fashioned broking activities and this tends to put further pressure on analysts to 'acceptable' research.

You can check out on this because research and recommendations issued by brokers needs to always have a disclaimer on the bottom telling you which companies they act for, and in what capacity.