Sell-Side Analyst
Also known as: Analyst Coverage, Equity Research Analyst, Research Coverage
A sell-side analyst works at a brokerage or investment bank and publishes research, ratings, and estimates on companies for the investing clients the firm serves.
A sell-side analyst works at an investment bank or brokerage and produces equity research on the companies they cover, including financial models, price targets, and buy, hold, or sell ratings. The research is distributed to the firm’s investing clients.
Sell-side vs buy-side
The sell side publishes research and facilitates trading. The buy side, such as mutual funds and hedge funds, invests money and consumes that research. The two interact constantly but have different incentives.
Why coverage matters to IR
Analyst coverage raises a company’s visibility, and analyst estimates roll up into consensus. Cultivating accurate, well-informed coverage is a core investor relations objective, especially for smaller companies that struggle to get noticed.