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Sell side equity research analysts primarily communicate their ideas through published equity research reports. In this article, we describe the typical components of a research report and show how they are used by both the . Equity research reports are usually available for a fee through financial data providers. At the bottom of the article, we include a downloadable sample equity research report.
Barring a new company initiation or an unexpected event, equity research reports tend to immediately precede and follow a company’s quarterly earnings announcements. That's because quarterly earnings releases tend to be catalysts for stock price movements, as earnings announcements likely represent the first time in 3 months that a company provides a comprehensive financial update.
Of course, research reports are also released immediately upon a major announcement like an restructuring. Additionally, if an equity research analyst initiates coverage on a new stock, he/she will likely publish a comprehensive initiation piece.or a
Equity research reports are one of several types of key documents analysts have to gather before diving into a full-scale financial modeling project. That's because research reports contain estimates used widely by investment bankers to help drive the assumptions underpinning 3-statement models and other .
On the, equity research is also widely used. Like investment bankers, buy side analysts find the insights in sell side equity research reports helpful. However, equity research is used to help the buy side professional understand the "street consensus," which is important for determining the extent to which companies have unrealized value that may justify an investment.
A full equity research report (as opposed to a short one-page "note") usually includes:
Below is a research report published by JP Morgan by the analyst covering Hulu. Download the entire report by clicking the image below.
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