Where to Find Sell-Side Analyst Research - dummies

Where to Find Sell-Side Analyst Research

By Matt Krantz, Robert R. Johnson

Research doesn’t do anyone any good if it’s just sitting on an investment banker’s shelf. Getting the word out, and sharing research ideas, are how sell-side analysts get noticed. When sell-side analysts make a name for themselves, they often draw attention to their firms.

Sometimes a sell-side analyst gets so well known in an industry that companies looking to go public look to the firm as an underwriter. It’s much how real-estate agents who focus on specific neighborhoods often win many of the listings in that area.

Investment banks get out the research from their sell-side analysts in a number of ways, including through the following:

  • The broker network: Most of the large firms with investment banking operations — the Bank of Americas and Morgan Stanleys of the world — employ armies of brokers around the globe. These brokers provide investment help and guidance to clients. The brokers often refer to the research of sell-side analysts when making investment recommendations.

  • Buy-side connections: Big mutual funds and other institutions tend to have ongoing relationships with certain large investment banks. It’s a tangled relationship with the buy-side investors looking to the investment banks as a source of all sorts of services, including trading and research. Big investment banks typically forward all their research to these large customers.

  • Electronic distribution: As more individual investors try their hand at picking stocks themselves, there’s been increased demand for them to obtain sell-side research. Most of the large online brokerage firms, including TD Ameritrade and Charles Schwab, provide research reports from some of the big investment banking operations.