Most of the investment opinions presented by analysts through securities firm reports are 'buy', so there is advice to understand the tone and hidden intentions.
Analyst Bang In-sung from Eugene Securities stated on the 29th in a report titled 'Weekly Analyst Sentiment Analysis' that 93.1% of the investment opinions published by analysts over the past five years since 2020 were 'buy'. This phenomenon has intensified compared to 67.3% in the 2000s and 89.6% in the 2010s.
In such a situation, there are limits to making judgments based solely on investment opinions, according to Analyst Bang. He said, 'The core of the analyst report lies not only in the data (numbers) but also in the logic and the strength of conviction that support those numbers.'
For example, even if the target price is maintained, if the report contains something like 'concerns about declining profitability due to increased competition', it should be detected as a negative signal.
Analyst Bang evaluated the positive ratio of analysts using the FinBERT model. Companies with a high positive ratio include HL Mando, Koyoung, Elentec, Doosan, Hyosung Heavy Industries, HYUNDAI WIA, Doosan Fuel Cell, Doosan Enerbility, Cheil Worldwide, Hanmi Pharmaceutical, and LG Energy Solution.
He emphasized that the changes in the positive ratio should be observed closely in conjunction with the earnings announcements for the second quarter (April to June). In the case of Hyosung Heavy Industries, the average positive ratio from 10 analysts who issued reports was high and the variance was small. In contrast, the average positive ratio from 11 analysts presenting reports on Hana Financial Group was low and the variance was large.
Analyst Bang noted, 'For stocks with a low average positive ratio and high variance, it is necessary to pay attention to volatility.'