What the analysts been saying recently

Recently I did a compilation of analysts targets (total of 7 research houses) - these information were extracted from "sginvestors.io"

Here are some observations:

1. Large cap companies tend to have a bigger following - so theoretically they should be better priced (i.e. not too far from fair value)

2. On considering whether to add dividend yield to these average prices, I realized that would be double counting. The analysts have already imputed those information into their calculations so it would not be right to add it in.

3. Average targets and the subsequent upside would not be complete without a calculation of the dispersion of analyst targets....interestingly DBS had the biggest dispersion while some smaller companies like Guocoland have analysts agreeing pretty much with each other on the fair value.

Here's the list of data with a little comments from TFG. Enjoy and happy analyzing.

On Blue Chips (STI):
- ST Engineering, Thaibev & Singtel look like safe bets for the year with the least dispersion and higher target prices

On Reits:
- Reits look fairly valued and may see only single digit gains (inclusive of dividends) for 2018.

On Small caps:

- The kind of stocks that give you the big boost over the next few years. Small companies with lower analyst coverage but with strong moats and significant growth story could be the right play for years to come.

Cheers.
TFG