Concerns Over Analyst Coverage Ease

Concerns over the quality of analyst coverage persist but are easing, according to new research from Citigate Dewe Rogerson.

A survey of 151 European IR professionals finds 21 per cent believe the quality of sell-side research reports has fallen over the last 12 months, down from 26 per cent who felt this way in last year’s survey.

At the same time, the number of respondents who think analyst coverage is improving has risen to 17 per cent from 14 per cent in 2010.

There is a ‘continued, albeit less pronounced, deterioration in the quality of coverage,’ notes Citigate in the study.

The sector least satisfied with the quality of analyst coverage is healthcare. Of the respondents working in this area, 43 per cent say the quality has deteriorated.

‘There appear to be fewer analysts with the ability to deliver differentiated/impactful analysis,’ comments one UK-based healthcare IRO in the survey, who complains of ‘lots of analysts churning out news flow’.

Click here to access the full survey, which covers a range of topics including guidance, debt IR and investor targeting.