I Love Equity Analysts

Research reports by investment banking are by far my favorite source of background research on companies and industries.  Thomson Research (formerly Investext) is the standard-bearer in this area, and I’ve made voracious use of it when I’ve had (highly expensive) access.  Finding a good “initiating coverage” report makes my day, for better or worse.

What makes them so good?

First, they’re much more in-depth than typical market research reports (DataMonitor, I’m looking at you).  When reading market research reports, I get the impression the analysts are filling out a template as quickly as possible.  The inevitable SWOT section tends to be extremely generic, to the point of uselessness.  Equity analysts, in contrast, do their homework.  They do channel and customer checks, even with difficult to reach constituencies like medical specialists.  They attend (and even organize) industry conferences.  They typically cover multiple leading companies in an industry segment and draw relevant comparisons between them. Continue reading I Love Equity Analysts