Q: Question, analysts -- this comes out of a little frustration. I trade on TD Waterhouse and today wasn't able to get this questioned answered by TD. Analyst Scott Buck of H.C. Wainwright has just changed his potential price for EGLX to $1.36. Prior he had this crazy speculative stock at a huge multiple. TD Waterhouse ranks him in the top of the class on todays main trading page for this pick. He as well has MOGO @ $10.86, while it trades at $1.88 Buck apparently has an average net return on his analysist picks of -10%. For an average investor, how the heck is Buck visible and relevant?!? Why would a company like TD give him a high rating & such great exposure?
5i Research Answer:
Mr. Buck may have had some one-time winners that skewed his ranking, but we are not aware of TD's ranking criteria here. But this is one reason we tend to ignore target prices. With small companies such as MOGO/EGLX, most analysts put them at the bottom of their work pile. They are often an afterthought. Target prices also tend to 'follow' stock prices, up or down. Mr. Buck follows 28 companies and we are sure EGLX is not high on his list of things to watch. He has always had a BUY on the stock, and had a $12.49 price target on it in 2021.