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Initiation Report Research coverage

In the current market environment, having a competent analyst provide research coverage has never been more important. Companies that have at least one sellside analyst following them and writing about them tend to have:

  • Much better trading liquidity
  • A broader and more diversified shareholder base, both domestically and internationally
  • A fairer valuation in the market
  • Easier and more attractively priced access to additional capital
  • Higher institutional ownership

In light of these important benefits, it’s not surprising that the management of most public companies would like to have research coverage. However, declining commission revenues and new regulations related to investment banking have led to a reduction in sellside research budgets. As a result, sellside coverage universes are shrinking, and fewer companies are getting the research coverage they deserve. To address this issue, corporate leaders have been increasingly commissioning “fee-based” research coverage, which is typically available in the market for $20,000 – $35,000 per year.

Coverage on a public company can extend up to two years, but traditionally is a one-year contract term. We also customize coverage in certain cases to an initiation of coverage report (“initiation report”) only.