Clearing Misconceptions: Understanding the Value of Sponsored Research for Public Issuers

For many public issuers, sponsored research often raises a myriad of doubts and misconceptions. However, it’s essential to debunk these myths and shed light on the true value that sponsored research can bring to companies seeking to enhance their visibility and credibility in the capital markets. Let’s address some common misconceptions and provide clarity on the matter:

Our analysts’ views may be biased

It’s natural to have concerns about bias in analyst reports. However, it’s crucial to understand that our analysts are committed to presenting factual information based on thorough research and analysis. Additionally, sponsored research, when well-written, helps answer typical questions brought up by institutional investors during screening or due diligence on potential investment targets. Our reports focus on objective data and insights, ensuring transparency and credibility in our assessments.

Quality of the research report

There’s often skepticism regarding the quality of sponsored research compared to reports from traditional brokerages. Rest assured, the content of our reports meets rigorous standards and is akin to reports published by reputable brokerages. We uphold strict quality control measures to ensure accuracy, relevance, and integrity in every report we produce. Unlike broker research, which is often transaction-driven, our reports provide value to companies within the investment community.

Who is the target readership

Some issuers may question the relevance of sponsored research, assuming it’s targeted solely at retail investors. However, our primary target readership is institutional investors, with distribution channels on Bloomberg, FactSet, and Refinitiv. These reports serve as valuable resources for institutional investors seeking in-depth analysis and insights to inform their investment decisions.

What if we give negative outlook/rating

Fear of a negative outlook or rating may deter issuers from engaging in sponsored research. However, it’s important to emphasize that our research process involves thorough screening and due diligence. We identify small & mid-cap companies with the potential for future growth and provide objective evaluations based on our findings.

After the report is published, there is no next step action

Issuers may worry about the aftermath of publishing a sponsored research report. However, our commitment extends beyond publication. Our analysts are available to address follow-up questions from investors, providing further clarity and insight. Additionally, we facilitate NDR trips for issuers, fostering opportunities for direct engagement with potential investors.

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