When analysts define a new price target for a stock. Is it based on actual fundamentals: costs, earnings, etc. Or does it include a guesstimation of how much the stock will change based on emotions from the masses?
For example, analysts keep saying Amazon is overvalued, yet the stock price consensus, pushed forward by analysts, is currently at $2100, which is above the current price. So it's undervalued? Or do they just assume people will be willing to shell out the same amount of goodwill on top of the actual fair price they calculated?