When a company earns its money from other people’s trading, a broker’s target price depends on how much trading there will be. Iggy and Angela use one target cut to ask what the broker assumed, what the trading figures show so far, and what a target price cannot tell you.
When a company earns from other people’s trading, a broker’s target price rests heavily on how much trading it expects. In this episode, Angela and I look at two target cuts on SGX, one to $20.30 and one to $20, and ask what each estimate assumes. I do not treat either cut as a prediction of where the share goes next. Instead, I show the three questions I ask before giving a target price any weight.
Key takeaways:
One broker cut its target to $20.30 from $22.20, while another moved to $20 from $26.40.
The first broker lowered earnings forecasts for the next three financial years by 8.3% to 8.5%.
Q1 daily securities trading value was $2 billion, up 33% year on year but down 8% quarter on quarter.
September derivatives volume fell 2% year on year to 29.8 million contracts.
A target price does not tell you the price path, the timing, or whether a share suits your portfolio.
Iggy’s Forensic Disclaimer
This content is produced for educational and informational purposes only. I am not a financial advisor. I am a retail investor who applies forensic analysis to my own portfolio and shares that process publicly. Nothing here constitutes a recommendation to buy, sell, or hold any security, and no specific target prices or personalised financial advice are offered.
Stocks assessed under Iggy’s Forensic Yield Standard are benchmarked against a 4.7% minimum yield hurdle. Stocks flagged as Growth Watch fall below this threshold but demonstrate clean balance sheet metrics and an identifiable growth catalyst. These carry a materially different risk profile and are not suitable as yield replacements for income-dependent investors.
All data is sourced from public filings and verified sources. Where data is unverified, it is explicitly flagged. All investments carry risk, including the potential loss of principal, and past performance is not indicative of future results. If you are making investment decisions involving CPF, SRS, or personal capital, please conduct your own due diligence or consult a MAS-licensed financial adviser before committing funds.
