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I have attached a report about the downgrade of ConocoPhilips by an analyst. He says the stock has run it's course and there is limited upside.

My question is how this analyst know the company ConocoPhilips's stock price can rise only to a certain level? Is he using some technical parameters like P/E Ratio or something similar to that?

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    They don't know, they give reasons in their analysis for their belief, analysts are wrong often.
    – Hart CO
    Oct 12, 2021 at 2:00
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    They can be wrong. But in this case, he stopped the price going higher. I'm interested to know what technical parameter he used to come up with the conclusion that there is no more upside. Oct 12, 2021 at 2:02
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    RSI, a chicken pecking a grid, who knows.
    – Hart CO
    Oct 12, 2021 at 2:45

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Entire volumes have been written about the prediction of stock prices. Analysts, given their profession, presumably have at least a passing familiarity with some of these. They can use any number of techniques or their combinations to forecast the price. They could also be completely making it up and just saying they did analysis as well. It's not like people check their work.

As for this particular analyst, I don't know, why don't you ask him? We can't read his mind. Sometimes they publish their reports somewhere where they explain how they arrived at the figure, sometimes not.

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