The opinion of a single word from a global brokerage firm — 'Buy', 'Hold', or 'Sell' — can at times shift billions of dollars in market value. Brokerage ratings have traditionally been the key determinants of investor mood, dictating short-term price action and, in most instances, even deciding on the direction of a whole sector.
How brokerage decide a stock rating?
When a broker such as Morgan Stanley or Goldman Sachs comes out with a research note rating a stock, institutional investors tend to respond immediately.
The reports are compiled after researching the public financial statements, attending conference calls and speaking with managers and clients of the company.
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Having gathered all this information, the financial analysts decide on whet