Anavex Life Sciences Corp (AVXL)

[BIOChecker4]

You are very naive. From Life On The Buy Side: “Sell side equity research makes money indirectly, primarily through commissions generated when the buy side trades through the sell side trading desks.”

See this link for additional information: https://www.lifeonthebuyside.com/life-on-the-sell-side-equity-research/#:~:text=Sell%20side%20equity%20research%20makes,the%20sell%20side%20trading%20desks.

Put yourself in the role of an investor. You’re thinking about buying a stock currently trading at say $4.00. Analyst A at firm A has a 12-month price target $8. Analyst B at firm B has a price target of $32. Which firm would you be more likely to buy through? The one with a $8 price target or the one with a $32 price target?

Look at the track record of a bunch of analysts. Most are more often wrong than right. For example, look at the track record of Soumit Roy at Jones Trading. His success rate is just 28%! https://www.tipranks.com/experts/analysts/soumit-roy

Next, look at the track record of Ram Selvaraju at HC Wainwright. His success rate is just 53% (basically a coin toss). https://www.tipranks.com/experts/analysts/ram-selvaraju

So ask yourself, How do these analysts stay employed? Clearly it’s not because they have such great track records of accurate forecasts. No. The answer is that they are very good at generating significant revenues for their firms and they are paid accordingly. It isn’t the accuracy of the price target that matters. It’s how adept they are at bringing in trading revenue.