Buy/ Accumulate or Sell/ Book Profits: These recommendations tell you whether the analyst expects the stock price to rise, fall or trade in a range from its current price or on the day the report is published. If an analyst expects a company’s performance in the near future to be good, he puts a buy / accumulate recommendation. On the other hand, if he expects the future financials to dive, he recommends you to sell the stock.
Many a time a sell recommendation could also indicate that he expects the share price to drop sharply, and hence, is advising you to sell. Similarly, in the case of a buy recommendation it could indicate he expects the share price to move up sharply. A lot of time analysts suggest ‘book profits’ in the place of a sell, if he has recommended buying at a lower price and the stock has run up subsequently, leaving you with profits.