How financial analysts value your company 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 regularly publish their findings and estimates in analyst studies.
Gaining investor trust with analyst coverage
In addition, analyst reports 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 build up sufficient analyst coverage to be regularly present with the relevant investors. This results in an analyst consensus. With cometis’ analyst consensus tool, you always have an up-to-date overview of the analyst estimates available on the market.
Analyst coverage – a challenge for SMEs
In the struggle for attention on the capital market, we are currently setting a growing gap. Recently large index values can have comprehensive analyst coverage since a large number of analysts write stock research on the company. SMEs, however, are finding it increasingly difficult to attract analyst coverage, and in some cases are unable to receive any at all. The implementation of the MiFID II Directive will exacerbate this trend. Qualitative differences are also clearly visible. Many market players 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.