Q: The news on well health has been good lately; how is it that analysts all of a sudden lower their ratings.. It makes me wonder if there is some manipulation going on unless they are seeing Well not as attractive all of a sudden. Your responses of late have been positive and i know opinions can differ. Can you shed some light please?
5i Research Answer:
We don't want to defend analysts much, but we think some of the blame needs to be given to investors who react to downgrades. Nothing has changed at the company. Also, CIBC's target price is still 26% above the current price. CIBC had an $11.50 target in 2021. Analysts tend to follow prices: if a stock goes down, more downgrades occur. We really pay little attention to target prices and would focus on fundamentals. WELL has 16 analysts, and on average they expect EPS to grow by 25% this year.