Differences between Equity Research and
Independent Equity Research
Equity Research:
- Performed by entities with financial interest in the stock (sell side or buy side analysts).
- Equity researchers focus on analyzing stocks, following news, talking to the management and estimating stock valuations, mainly “on radar”, large size companies.
- Equity researchers often don’t focus on new world companies (life science and technology “off radar”, mid-small cap. firms).
- Opportunity exists for public mid-small R&D-intensive companies looking for investors’ attention (pump liquidity).
Independent Equity Research:
- Performed by entities without financial interest in the stock.
- A boutique service offered by only a few firms worldwide.
- Provides an unbiased opinion.
- No sell side analyst (i.e. marketing analyst) nor buy side analyst (mainly for in-house investment decisions).
- Calculates the fair value of the share, publishes the current trading price.
- The analysis does not constitute investment advice (sell/buy), and the service provider has no financial interest in securities they cover.