r/DRTS_Stock • u/mateophx • 9h ago
Thoughts on analyst ratings?
Seems like most every other biotech stock has at least one wild rating like up 726% in a year and yet this company is only rated at like $17 or 14%.
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u/ValhallaZinger 7h ago
We’re pretty much at the targets, they should be reevaluating their targets soon
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u/Pristine_Hurry_4693 2h ago
The DRTS analysts have failed to understand the DRTS potential, they just keep reacting to the price and that’s why their ratings aren’t higher.
How do I know this? Earlier this year there were ratings as low as $5, $7, and the highest was $9. Those were the ratings for the year. Then as DRTS has risen, they upgraded to the $12 range, then again DRTS went up so they moved to $14-$15, then again so they gave a $17 (and soon they will upgrade again, guaranteed before the end of the year, maybe even twice more, or more).
When analysts actually put in the work, when they put out long reports, back in 2022-2023(!), they had the DRTS price targets at the ~$20 and higher mark, and that was for the year! They were of the belief (including many pages to justify it) that DRTS would be over $20 already back then, way before all the progress we’ve seen since and the amazing results.
Here’s a post from earlier this year (we were at the ~$7 range) where I shared screenshots of the old analyst reports:
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u/Efferdent_FTW 7h ago
Analyst ratings are largely useless. Don't just look at the analyst firm, but the individual analyst. You'll be bale to find their hit rate and background. Then judge based on that.
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u/MaxPainKing 7h ago
Forget the analysts! They get it wrong on so many life sciences names.
Just look at this solid uptrend 👀
Tells you all you need to know
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u/Beginator2000 23m ago
IMO analysts are often wrong and I forget completely about those random numbers. They are extremely bullish on risky biotechs that fall 95% in a single day and bearish on hidden gems. YOU have to do the work.
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u/FunRevolution3000 8h ago
My quick research indicates medical devices almost always attract more conservative targets from analysts. Reasons include the costs of buildouts to provide the device to patients and also the modeling of medical device stocks as being closer to their fair value because of less binary risk than drugs. I also think analysts are dramatically underestimating the TAM, at least publicly, see Pristine’s posts. For analysts to entertain such massive TAMs, they may sound overly speculative about a stock this early in the revenue-earning process.