The valuation of the company by financial analysts plays a decisive role in the purchase decision of investors. Investors rely on analysts’ estimates as they track a listed company over a longer period of time and publish their findings or estimates regularly in analyst studies.
Win the trust of investors with Analyst Coverage
In addition, analyst Studies are regularly quoted by financial journalists. It is therefore of particular importance to communicate intensively with this target audience. At the same time, every listed company should provide sufficient coverage for analysts to be regularly present with the relevant investors. This results in an Analyst Consensus. With the cometis tool Analyst Consensus, you always have an up-to-date overview of the analyst estimates available on the market.
Analyst coverage as a challenge for small and medium-sized enterprises
In the struggle for attention on the capital market, we are currently setting a growing gap. Recently large index values can have a comprehensive analyst coverage, since a large number of analysts write a stock research about the company. Small and medium-sized enterprises, on the other hand, are finding it increasingly difficult to attract analysts for coverage, and in some cases are unable to attain any analyst coverage at all. The implementation of the MiFID II Directive will exacerbate this trend. Qualitative differences are also clearly visible. Many market players also speak of “overbroked” and “underbroked.”
Expanding targeted Analyst Coverage
It is also possible for small and medium-sized companies to ensure sufficient analyst coverage in terms of quality and quantity. We help our clients build additional analyst coverage. This is usually a longer-lasting process. Firstly, check for potential weaknesses in the Equity Story. To this end, we analyze the Investor Relations activities of our customers and their international peer group partners, elaborate concrete recommendations for action and implement them for our customers. On the basis of our analysis, we establish contact with the appropriate analysts. In past projects, we have been able to recruit up to nine additional analysts for our clients – at the national and international level.