Foghorn Therapeutics Inc. (NASDAQ: FHTX) closed the last trading session at $8.28, gaining 35.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $15 indicates an 81.2% upside potential.
The average comprises five short-term price targets ranging from a low of $6 to a high of $20, with a standard deviation of $5.83. While the lowest estimate indicates a decline of 27.5% from the current price level, the most optimistic estimate points to a 141.6% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for FHTX, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report ...
