Why do banks do this

Same reason people shill their stocks.

>>1388594
first they buy the undervalued stock, then they show the world why they bought it so others buy too -->price rises

its just pump and dump on high lvl

>>1388615
this
>>1388594
If they sus out a few reasons why XYZ is undervalued, they buy it and release their report on their target price a few days later. A bunch of small and medium sized read their report and agree with it, pushing the price higher, while holders that were considering selling now hang on to their stock because some bank said it's a good buy.

It becomes a self fulfilling prophecy.

>>1388594
>not knowing the difference between sell side and buy side research.
>not knowing the purpose of sell side research

wew lad

>>1388594
Most big banks have a brokerage service that does the research
The research itself doesn't get them money, they get it from the fees gained when clients put an order

What's more, transaction volume is higher when the outlook is bullish, so they make more money, and financial analysts are pressured by companies to give them a buy rating

>>1388770

>financial analysts are pressured by companies to give them a buy rating

Woah that's corrupt. How can you tell which buy ratings are legit?

>>1388798
> How can you tell which buy ratings are legit?

Easy. All prepaired market research that you didn't pay for (and probably most of that too) is misinformation used to manipulate you. Believe none of it.