- Analysts upgrading HGV are not considering the ‘dark side’ of this industry.
- Potential liabilities can spring up anytime that can change this tune.
- Angry customers complain, which can soon become lawsuits, with deleterious consequences.
There’s no dispute that Hilton Grand Vacations Inc (NYSE:HGV) has been doing well over the past few weeks. But, and it’s a big but, most of this buying has been fueled by analyst reports, such as this one:
Nomura reiterated their buy rating on shares of Hilton Grand Vacations Inc in a research note published on Friday morning. The brokerage currently has a $43.00 price target on the stock.
We all know how this goes; a huge Wall St. bank has to unload a fund position so they ask their buddies in the analysis department to publish a buy or hold rating on the issue which they know will be good for a few points. Of course it doesn’t always happen that way, but the conflict and potential for conflicts should not be ignored by investors. Many investors already don’t pay attention to what the analysts say, or else Seeking Alpha wouldn’t be so popular!
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