“Far too optimistic” – Why the profit forecasts of many corporations are an illusion

chemical, automotive and aerospace industries

According to Commerzbank strategist Andreas Hürkamp, ​​business analysts are “much too optimistic”.

Dusseldorf The war in Ukraine, expensive energy and a lack of semiconductors threaten to stall the economy. Likewise, the rising interest rates and tough corona restrictions in China. Nevertheless, domestic and foreign analysts expect that companies in Europe and the USA will earn as much as never before this year.

A contradiction that is causing nervousness among investors on the global stock exchanges and is partly responsible for the sharp price fluctuations of the past few weeks. Analysts’ earnings forecasts have a decisive influence on stock valuations. For example, they go into the price-earnings ratio, one of the key indicators used to determine how high or how low a stock is valued compared to the competition or the overall market.

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