A broker recommendation is an opinion given by a broker regarding the merits of a particular stock. A broker recommendation may be issued by an individual analyst or represent a consensus of the entire brokerage. A broker recommendation is typically based on equity research data. Thus, before issuing a broker recommendation, analysts may examine various financial aspects of the stock in question, such as earnings and PE ratios, in order to determine its future trends. A broker recommendation is usually declared to advise brokerage clients to either buy or sell a given security. To streamline the process, a typical broker recommendation typically comes in a form of a rating. Although ratings jargon varies from brokerage to brokerage, common broker recommendation ratings are “sell”, “hold”, “buy”, and “strong buy”. |
