Analysts scale back price targets as rally defies fundamentals

Despite rally, over 60% of BSE 500 companies see their 12-month target price revised downwards

Nearly two out of three companies have seen a cut in consensus 12-month target price in the past one month even as benchmark indices have climbed to new record highs. Experts say analysts are tempering expectations as stock prices of most companies have rallied without much fundamental basis. 

According to the data, various brokerages have trimmed the one-year price targets of 302 companies in the BSE 500 index in the past one month. The cut in price targets has come ahead of announcement of September quarter results. Interestingly, shares of several companies are current trading much higher than their 12-month