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Morgan Stanley’s Shalett Says Analysts Are ‘Deer in Headlights’

  • Bullish earnings estimates need to be reduced, she says
  • CIBC’s Donabedian agrees ‘analysts are still in fantasy land’
Bloomberg business news
Market Rally a 'Classic' Bear, Says Morgan Stanley's Shalett

Wall Street analysts are sticking with their bullish earnings forecasts for this quarter, and Morgan Stanley’s Lisa Shalett says they need a reality check.

“Economists have begun to cut their top-down economic forecasts for GDP, and yet fundamental company analysts are sitting there like deer in headlights not knowing what to do with numbers,” the Morgan Stanley Wealth Management chief investment officer said on Bloomberg TV Monday. “We just don’t see how we don’t get a recalibration here from the analysts that take the E in P/Es down.”