How predictive are analyst's forecasts? A behavioural finance's view

The purpose of this thesis is to study the accuracy of financial analysts from a behavioural finance perspective. We decided to focus on the target prices these professionals set in order to develop the causes and consequences of the difference with the actual stock prices. These target prices are an integral part of the reports of financial analysts. By analysing this quantitative component of financial reports, a better understanding of the magnitude of the different types of error is possible. The evaluation of the accuracy of predictions allows us to establish a scheme of the behaviour of financial analysts when composing these reports. As suspected, these analysts, like all human beings, are subject to several psychological biases.