1. Independent Equity Research
Nearly all equity research is nowadays performed by stock brokers, investment banks, and other entities which have a financial interest in the stock being analyzed. On the other hand, Independent Equity Research is a boutique service offered by only a few firms worldwide. The aim of such research is to provide an unbiased opinion on the state of the company and potential forthcoming changes, including in their share price. The analysis does not constitute investment advice, and analysts are prohibited from trading any securities being analyzed. Furthermore, a company like Frost & Sullivan conducting Independent Equity Research services is reimbursed by a third party entity and not the company directly. Compensation is received up front to further secure the independence of the coverage.
2. Valuations for technology firms
Pharmaceuticals, cybersecurity, renewable energy and other technological firms need valuation for various reasons – mergers and acquziations, IPOs or for internal reasons. We, in Frost & Sullivan, based our valuation models on our in depth understanding of technology and market trends.
3. Our Approach to Independent Equity Research
Leverage in depth industry analysis expertise, financial services capabilities and global coverage of a reputable firm.
Research and Independient E.R.
- 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.