Analysts are Still Relevant

28 January 2010

This just in – sell-side analysts are still relevant….whether you like it or not.

Following the financial crisis of late 2008 and early 2009, there has been a lot of buzz about the sell-side community getting smaller and the notion that banks and boutiques are moving away from (or drastically changing) their typical research models.

Even if this were true, I would argue that the remaining analysts (let’s call them “the survivors”) have become more important and more influential.

There will always be a market within the institutional shareholder community for specialized, detailed, and high quality research on specific sectors and specific companies.

With this in mind, what is your strategy for 2010 when it comes to:
• Improving the quality of analyst coverage for your company?
• Improving your company’s communications with covering analysts?
• Improving the perception of your management team in the minds of analysts?

Whether we like it or not, analysts still have power.

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