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Theoricaly that they hope the company will return to profitablily.
In practice, they know that the company will lose even more money soon and those who pay them want to liquidate their stock holding ASAP.
Yes. Any company exists to make profit. Even if they make a loss now, they would want to turn profit sometime in the future. The analyst probably is looking into that possibility when putting the buy recommendation.
may be there are some technical aspects available with the analysts that makes them say it as no analyst would like to lose his current clientele becaus eof some bad predictions (may be...!)
JWP
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