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Analyst Ratings (Summary)

Trading Term

An Analyst Ratings Summary aggregates the opinions of financial analysts regarding a particular security. These summaries typically include ratings such as “Buy,” “Hold,” or “Sell,” along with target price forecasts, providing investors with insights into market sentiment and potential investment decisions.

These summaries help investors gauge the consensus view on a security’s potential performance. By analyzing the distribution of ratings and target prices, investors can make more informed decisions about buying or selling a security.

Analyst ratings are numerical scores ranging from 1 to 5 assigned by third-party analysts, where:

1 = Strong Buy 2 = Buy 3 = Hold 4 = Underperform 5 = Sell

The ratings help identify companies with attractive upside potential compared to current prices, relative to the market and/or their industry sector. The analysis includes both the consensus rank (average rating across analysts) and percent upside (how much higher the average price target is compared to current price).

Note: Analyst Rating feature is not available to Interactive Brokers Canada Inc (IBC) clients.

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