On May 9, uBS analyst William Janela maintained his “Hold” rating on E&P Houston-based Oasis Petroleum (OAS) and set a price target of $9. The company’s shares closed at $9.46 on May 10.
Cantor Fitzgerald analyst Brad Carpenter reiterated a “Hold” rating on Oasis on May 19 and set a price target of $9. The company’s shares closed that day at $9.46.
One of the worst kept secrets on Wall Street is that a “Hold” rating issued by research analysts is synonymous with a “Sell” rating. How come the analysts do not just tell investment banking clients to sell – and lock in profits?
- Some firms link compensation and bonuses— indirectly — to the number of investment banking deals the analyst helps to land.
- The issuance of unfavorable reports could alienate senior management and shutter future access.