RE: Broker target3 Dec 2022 09:33
Hi rossjeal,
Sort of the opposite of what it initially appears!!
The terms under and over weight refer to the brokers expected company performance, and not directly referring to the SP.
So, underweight means they expect the company to perform 'under' expectations. Therefore you should reduce/sell your holdings, since they feel the SP will drop.
Reverse true for for 'overweight'. So, in theory, an opportunity to buy shares prior to an expected rise by brokers.
I agree their terminology is a little confusing (deliberately). Plus, it is only their opinion. Which, whilst probably holding more sway than you or I, can often be wrong!!
Hope that helps, a little.