Regarding your comment on analysts... They are long term assumptions. Were talking years and years in advance. They will come up with a target price and therefore recommendation based on their assumptions so they are rarely going to use current spot prices near ATHs and assume that continues the next 20+ years. It would be unconscionable to do so in order to slap an attractive SP target on a stock and get clients to buy it. Commodities are cyclical and I am yet to see many if any that retain their price for 20 years.
In 20 years time cobalt may be replaced in a lot of devices (not anytime soon), I think being conservative is ideal and hence I have been so critical of ARLs PFS announcement today.
Analysts are hit and miss but I've worked with quite a few and the parameters they need to meet is quite grueling. Much of the modelling will have a 'current' price but it reverting over time to their long term forecasts.
CLA
Price at posting:
14.5¢ Sentiment: Hold Disclosure: Held
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