Stock Trading and Other Things

Why do stock brokers prepare earnings estimates for companies for only 2 years?

Majority of stock brokers while preparing earnings estimates for their companies under coverage prepare these estimates for the next 2 financial years. Why is this done for only 2 years, and not for a longer time, say 5 years?
Also, how does giving a Earnings multiple of the next 2 years help to achieve a target price?

Public Comments