How can the analist give both a sell underweight advice and an overweight advice at the same time?


So I make this post because of this article: https://www.iex.nl/Nieuws/780668/Beursblik-mijd-Europese-bankaandelen.aspx

It is in Dutch so I will translate below:

(ABM FN-Dow Jones) European bank shares have benefited significantly from rising interest rates and have therefore outperformed the broader market, but the time has now come to say goodbye to these shares. This is what Bank of America analysts think.

Now that the requirements for taking out a loan are becoming stricter and fiscal support in the US is being phased out, interest rates will fall. Bank of America expects the US ten-year yield to have fallen to 3.8 percent in the first quarter. It is currently listed at 4.256 percent.

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“Banks are vulnerable in a market with declining bond yields and rising interest rate spreads,” the analysts said.

The American bank sees European bank shares performing 15 percent worse than the broader market in the coming months. The recommendation for these shares is therefore Underweight.

In addition to bank stocks, Bank of America is also negative on automakers. However, the bank is overweight on stocks in food and beverage and the pharmaceutical industry.


Okay European banks underpeform and they give a sell advice.

I have ING shares average cost of €11,9 from ING they give this(redicilously) high target price:

ABM FN-Dow Jones) Bank of America on Monday increased the price target for ING Group from 17.50 to 20.00 euros, while maintaining the buy recommendation. This was evident from an analyst report from the American bank.

According to the American bank, ING is seeing revenues rise, while costs are under control and assets are of good quality.

So what is it? The expectional high targetprice or just yolo sell.


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