What do the brokers say about Quindell?
Today Canaccord issued update indicating Aviva probably the major insurer in Canada and reiterated target share price of 362p.
All brokers who rate the share have given the share a strong buy rating. No broker has as a sell.
Canaccord Genuity, Daniel Stewart, Investec Securities and Cenkos Securities have a share price target for Quindell of between 362p and 1005p.
One of these brokers reiterated their buy recommendation on the 13th October. The others reiterated their buy recommendations in September.
The business has been challenged with regard to its business model and accounting practices. Is it possible for these brokers to have not investigated the business to ensure their recommendations are credible?
Their market credibility and hence businesses would be in tatters if after all the exposure they didn’t ensure their ratings stood up to scrutiny. They have to have total belief in the business to issue a buy rating.
Does anybody really believe that these brokers have got it so wrong?
Some will say the brokers ratings are meaningless as they have a business relationship with Quindell. You could argue this about two of the brokers, but not all four.
It’s not credible to believe in house brokers would risk their international business clients for the sake of one companies fee.
This is another strong indicator that Quindell is a robust business.