RBC Says Hope Overwhelms Reality in Keeping Earnings Estimates
- Profit expectations remain strong even as stock markets plunge
- ‘Recession pops up on almost every other conference call’
Stock analysts have been sticking to their earnings estimates despite a dramatic change in the economic outlook. They may soon have reason to get more pessimistic, according to executives at one of Canada’s largest investment managers.
Photographer: Christinne Muschi/BloombergThis article is for subscribers only.
Stock analysts have been sticking to their earnings estimates despite a dramatic change in the economic outlook. They may soon have reason to get more pessimistic, according to executives at one of Canada’s largest investment managers.
Most sell-side analysts are not pricing in the full impact that rising interest rates could have on corporate profits, said Stuart Kedwell of RBC Global Asset Management Inc.