ACAS Crosses Above Average Analyst Target

In recent trading, shares of American Capital Ltd (NASD: ACAS) have crossed above the average analyst 12-month target price of $16.33, changing hands for $16.36/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking ...