Analyst stock recommendations

Many companies, especially listed ones, are followed by business analysts. Many of these work for banks or other financial organizations that either trade on stock exchanges or they are advisors in the financial world. Based on an analysis of companies they provide recommendations on whether to buy, hold or sell stocks of these companies. Highly traded stocks, bonds, etc. are of course tracked by more analysts and more recommendations are available.

One of the sources that includes some of the analysts recommendations is Datastream. Two specific Data types are of  interest:

RECNO = Number of recommendations for an equity

RECCON = Recommendation consensus (2 decimal places).
The following values apply:

RECCON Value        Meaning
Between 1 & 1.49         Strong Buy
Between 1.5 & 2.49     Buy
Between 2.5 & 3.49     Hold
Between 3.5 & 4.49     Underperform
Between 4.5 & 5            Sell

Below you see an example search with the result. The stock of the company Aalberts Industries is followed by (on average) 10 analysts and it is part of the Euronext Amsterdam Midkap index. The stock of the company AND International Publishers is currently only followed by one analyst. The company is not part of any index on the same exchange.


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