If you’ve been paying attention, you may have noticed a lot of the fundamental analysts’ recent upgrades. I get a very real sense that these raises were much more of a market call than legitimate upgrades based upon real fundamental improvements in these companies businesses.
Consider these: Goldman Sachs upgraded Cisco and Software; Cisco Systems was upped to buy from hold at Deutsche Bank; Intl Business Machines(IBM:NYSE) was upped to outperform from neutral at Credit Suisse First Boston; Both Soundview and Smith Barney ups the Chip Equipment stocks;
Are these fundamental analysts making a market timing call? Were their targets too low, and they feared the train was leaving the station without them?
I wonder if this is a classic overeaction . . . Are the fundie guys doing their research and channel checks, and boldly determining that a tech revival is upon us? Or are they playing the market timing game ? (note — unrelated to mutual funds market timing)
I’m not sure, but I thought I should at least raise the issue; It would be ironic that these guys suddenly get Bull Fever after a 40% rise in the Nazz . . .