That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces. However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. However, an impressive consensus price target is not the only factor that indicates a potential upside in RADI. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. The smaller the standard deviation, the greater the agreement among analysts. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. While the lowest estimate of $14 indicates a 38.6% increase from the current price level, the most optimistic analyst expects the stock to surge 127.7% to reach $23. The mean estimate comprises three short-term price targets with a standard deviation of $4.93. Going by the price targets, the mean estimate of $17.33 indicates a potential upside of 71.6%. (RADI) have gained 7% over the past four weeks to close the last trading session at $10.10, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Shares of Radius Global Infrastructure, Inc.
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