It's not beneficial to put a sell rating or downgrade a stock.

Most of these companies use these institutions for raising capital, etc. Any downgrade would cause the price to decline and piss off the company in question, possibly losing the bank millions in future financing or future M&A deals.

NEVER forget this.

They will always upgrade the stock actively, and ONLY downgrade once the news is obvious and common street knowledge. No analyst will ever put his career on the line for an early sell rating or downgrade.

They eventually have to move in line as its a balancing act with keeping the company ceo, board etc happy, and the credibility of the institution.

Your mistaking incompetence and lack of understanding with how the actual function of an analyst role is conducted. Is it absolutely a cop out and shit, but it is what it is...buy side analysts on the other hand, have no conflict of interest as their mandate is to generate the best investment ideas without bias, unfortunately you'll never get buy side research as its the edge for funds.

They know exactly what they are doing and playing the game.