One reader has drawn my attention to a Buy recommendation on MOL Global from Deutsche Bank (dated 20 November 2014) with a 12 month price target of USD 12.
MOL's share price currently hovers around USD 0.24, 98% below the target price, in other words the price has to multiply by a factor 50 to reach the target. With the company being soon delisted, that looks rather unlikely.
It should be noted that Deutsche Bank was conflicted, but at least the company did announce that in the appendix:
Another example why readers should not take broker's research too serious. Although there might be interesting information in their reports, I personally never follow their specific buy/hold/sell recommendations.
Yes, DB were joint lead managers on the deal (with UBS) and made a cool US$3mn in feesReplyDelete
Wow, that is 20% of MOL Global's current marketcap ....ReplyDelete
The total fees - c. $13mn (shared between Citi, DB, UBS and lawyers) - nearly equal the mkt cap ($15.5mn)!ReplyDelete
Better be a broker for an IPO than an investor in an IPO.ReplyDelete
Very true in the case of MOL Global, probably true for most IPOs.
Perhaps for the exception of a few great companies that list, grow and generate shareholder wealth over time...ReplyDelete