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What’s in an Equity Research Report?

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Even though you can easily find real equity research reports via the magical tool known as “Google,” we’ve continued to get questions on this topic.

Whenever I see the same question over and over again, you know what I do: I bash my head in repeatedly and contemplate jumping off a building…

…and then I write an article to answer the question.

To understand an equity research report, you must understand what goes into a  stock pitch first.

The idea is similar, but an ER report is a “watered-down” version of a stock pitch.

But banks have some very solid reasons for publishing equity research reports:

Why Do Equity Research Reports Matter?

You might remember from previous articles that equity research teams do not spend that much time writing these reports .

Most of their time is spent speaking with management teams and institutional investors and sharing their views on sectors and companies.

However, equity research reports are still important because:

• You do still spend some time doing the required modeling work (~15%) and writing the reports (~20%).
• You might have to write a research report as part of the interview process.

For example, if you apply to an equity research role or an equity research internship , especially in an off-cycle process, you might be asked to draft a short report on a company.

And then in roles outside of ER, you need to know how to interpret reports quickly and extract the key information.

Equity Research Reports: Myth vs. Reality

If you want to understand equity research reports, you have to understand first why banks publish them: to earn higher commissions from trading activity.

A bank wants to encourage institutional investors to buy more shares of the companies it covers.

Doing so generates more trading volume and higher commissions for the bank.

This is why you rarely, if ever, see “Sell” ratings, and why “Hold” ratings are far less common than “Buy” ratings.

Different Types of Equity Research Reports

One last point before getting into the tutorial: There are many different types of research reports.

“Initiating Coverage” reports tend to be long – 50-100 pages or more – and have tons of industry research and data.

“Sector Reports” on entire industries are also very long. And there are other types, which you can read about here .

In this tutorial, we’re focusing on the “Company Update” or “Company Note”-type reports, which are the most common ones.

The Full Tutorial, Video, and Sample Equity Research Reports

For our full walk-through of equity research reports, please see the video below:

Table of Contents:

• 1:43: Part 1: Stock Pitches vs. Equity Research Reports
• 6:00: Part 2: The 4 Main Differences in Research Reports
• 12:46: Part 3: Sample Reports and the Typical Sections
• 20:53: Recap and Summary

You can get the reports and documents referenced in the video here:

• Equity Research Report – Jazz Pharmaceuticals [JAZZ] – OUTPERFORM [BUY] Recommendation [PDF]
• Equity Research Report – Shawbrook [SHAW] – NEUTRAL [HOLD] Recommendation [PDF]
• Equity Research Reports vs. Stock Pitches – Slides [PDF]

If you want the text version instead, keep reading:

Watered-Down Stock Pitches

You should think of equity research reports as “watered-down stock pitches.”

If you’ve forgotten, a hedge fund or asset management stock pitch ( sample stock pitch here ) has the following components:

• Part 1: Recommendation
• Part 2: Company Background
• Part 3: Investment Thesis
• Part 4: Catalysts
• Part 5: Valuation
• Part 6: Investment Risks and How to Mitigate Them
• Part 7: The Worst-Case Scenario and How to Avoid It

In a stock pitch, you’ll spend most of your time and energy on the Catalysts, Valuation, and Investment Risks because you want to express a VERY different view of the company .

For example, the company’s stock price is $100, but you believe it’s worth only $50 because it’s about to report earnings 80% lower than expectations.

Therefore, you recommend shorting the stock. You also recommend purchasing call options at an exercise price of $125 to limit your losses to 25% if the stock moves in the opposite direction.

In an equity research report, you’ll still express a view of the company that’s different from the consensus, but your view won’t be dramatically different.

You’ll spend more time on the Company Background and Valuation sections, and far less time and space on the Catalysts and Risk Factors. And you won’t even write a Worst-Case Scenario section.

If a company seems overvalued by 50%, a research analyst would probably write a “Hold” recommendation, say that there’s “uncertainty around several customers,” and claim that the company’s current market value is appropriate.

Oh, and by the way, one risk factor is that the company might report lower-than-expected earnings.

The Four Main Differences in Equity Research Reports

The main differences are as follows:

1) There’s More Emphasis on Recent Results and Announcements

For example, how does a recent product announcement, clinical trial result, or earnings report impact the company?

You’ll almost always see recent news and updates on the first page of a research report:

These factors may play a role in hedge fund stock pitches as well, but more so in short recommendations since timing is more important there.

2) Far-Outside-the-Mainstream Views Are Less Common

One comical example of this trend is how all 15 equity research analysts covering Enron rated it a “buy” right before it collapsed :

Sell-side analysts are far less likely to point out that the emperor has no clothes than buy-side analysts.

3) Research Reports Give “Target Prices” Rather Than Target Price Ranges

For example, the company is trading at $50.00 right now, but we expect its price to increase to exactly $75.00 in the next twelve months.

This idea is completely ridiculous because valuation is always about the range of possible outcomes, not a specific outcome.

Despite horrendously low accuracy , this practice continues.

To be fair, many analysts do give target prices in different cases, which is an improvement:

4) The Investment Thesis, Catalysts, and Risk Factors Are “Looser”

These sections tend to be “afterthoughts” in most reports.

For example, the bank might give a few reasons why it expects the company’s share price to rise: the company will capture more market share than expected, it will be able to increase its product prices more rapidly than expected, and a competitor is about to go bankrupt.

However, the sell-side analyst will not tie these factors to specific share-price impacts as a buy-side analyst would.

Similarly, the report might mention catalysts and investment risks, but there won’t be a link to a specific valuation impact from each factor.

So the typical stock pitch logic (“We think there’s a 50% chance of gaining 80% and a 50% chance of losing 20%”) won’t be spelled out explicitly:

Your Sample Equity Research Reports

To illustrate these concepts, I’m sharing two equity research reports from our financial modeling courses :

The first one is from the valuation case study in our Advanced Financial Modeling course , and the second one is from the main case study in our Bank Modeling course .

These are comprehensive examples, backed by industry data and outside research, but if you want a shorter/simpler example you can recreate in a few hours, the Core Financial Modeling course has just that.

In each case, we started by creating traditional HF/AM stock pitches and valuations and then made our views weaker in the research reports.

The Typical Sections of an Equity Research Report

So let’s briefly go through the main sections of these reports, using the two examples above:

Page 1: Update, Rating, Price Target, and Recent Results

The first page of an “Update” report states the bank’s recommendation (Buy, Hold, or Sell, sometimes with slightly different terminology), and gives recent updates on the company.

For example, in both these reports we reference recent earnings results from the companies and expectations for the next fiscal year:

We also give a “target price,” explain where it comes from, and give our estimates for the company’s key financial metrics.

We mention catalysts in both reports, but we don’t link anything to a specific valuation impact.

One problem with providing a specific “target price” is that it must be based on specific multiples and specific assumptions in a DCF or DDM.

So with Jazz, we explain that the $170.00 target is based on 20.7x and 15.3x EV/EBITDA multiples for the comps, and a discount rate of 8.07% and Terminal FCF growth rate of 0.3% in the DCF.

Next: Operations and Financial Summary

Next, you’ll see a section with lots of graphs and charts detailing the company’s financial performance, market share, and important metrics and ratios.

For a pharmaceutical company like Jazz, you might see revenue by product, pricing and # of patients per product per year, and EBITDA margins.

For a commercial bank like Shawbrook, you might see loan growth, interest rates, interest income and net income, and regulatory capital figures such as the Common Equity Tier 1 (CET 1) and Tangible Common Equity (TCE) ratios:

This section of the report explains how the analyst or equity research associate forecast the company’s performance and came up with the numbers used in the valuation.

The valuation section is the one that’s most similar in a research report and a stock pitch.

In both fields, you explain how you arrived at the company’s implied value, which usually involves pasting in a DCF or DDM analysis and comparable companies and transactions.

The methodologies are the same, but the assumptions might differ substantially.

In research, you’re also more likely to point to specific multiples, such as the 75 th percentile EV/EBITDA multiple, and explain why they are the most meaningful ones.

For example, you might argue that since the company’s growth rates and margins exceed the medians of the set, it deserves to be valued at the 75 th percentile multiples rather than the median multiples:

Investment Thesis, Catalysts, and Risks

This section is short, and it is more of an afterthought than anything else.

We do give reasons for why these companies might be mis-priced, but the reasoning isn’t that detailed.

For example, in the Shawbrook report we state that the U.K. mortgage market might slow down and that regulatory changes might reduce the market size and the company’s market share:

Those are legitimate catalysts, but the report doesn’t explain their share-price impact in the same way that a stock pitch would.

Finally, banks present Investment Risks mostly so they can say, “Well, we warned you there were risks and that our recommendation might be wrong.”

By contrast, buy-side analysts present Investment Risks so they can say, “There is a legitimate chance we could lose 50% – let’s hedge against that risk with options or other investments so that our fund does not collapse .”

How These Reports Both Differ from the Corresponding Stock Pitches

The Jazz equity research report corresponds to a “Long” pitch that’s much stronger:

• We estimate its intrinsic value as $180 – $220 / share , up from $170 in the report.
• We estimate the per-share impact of each catalyst: price increases add 15% to the share price, more patients from marketing efforts add 10%, and later-than-expected generics competition adds 15%.
• We also estimate the per-share impact from the risk factors and conclude that in the worst case , the company’s share price might decline from $130 to $75-$80. But in all likelihood, even if we’re wrong, the company is simply valued appropriately at $130.
• And then we explain how to hedge against these risks with put options.

The same differences apply to the Shawbrook research report vs. the stock pitch, but the stock pitch there is a “Short” recommendation where we claim that the company is overvalued by 30-50%.

And that sums up the differences perfectly: A Short recommendation with 30-50% downside in a stock pitch turns into a “Hold” recommendation with roughly equal upside and downside in a sell-side research report.

I’ve been harsh on equity research here, but I don’t want to disparage it too much.

There are many positives: You do get more creativity than in IB, it might be better for hedge fund or asset management exits, and it’s more fun to follow companies than to grind through grunt work on deals.

But no matter how you slice it, most equity research reports are watered-down stock pitches.

So, make sure you understand the “strong stuff” first before you downgrade – even if your long-term goal is equity research.

You might be interested in:

• The Equity Research Analyst Career Path: The Best Escape from a Ph.D. Program, or a Pathway into the Abyss?
• Private Equity Regulation : 2023 Changes and Impact on Finance Careers
• Stock Pitch Guide: How to Pitch a Stock in Interviews and Win Offers

About the Author

Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street . In his spare time, he enjoys lifting weights, running, traveling, obsessively watching TV shows, and defeating Sauron.

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Read below or Add a comment

15 thoughts on “ What’s in an Equity Research Report? ”

Hi Brian, what softwares are available to publish Research Reports?

We use Word templates. Some large banks have specialized/custom programs, but not sure how common they are.

Is it possible if you can send me a template in word of an equity report? It will help the graduate stock management fund a lot at Umass Boston.

We only have PDF versions for these, but Word should be able to open any PDF reasonably well.

Do you also provide a pre constructed version of an ER in word?

We have editable examples of equity research reports in Word, but we generally only share PDF versions on this site.

Hey Brian Can you please help me with coverage initiated reports on oil companies. I could not find them on the net. I need to them to get equity research experience, after which only I will be able to get into the field. I searched but reports could not be found even for a price. Thanks

We have an example of an oil & gas stock pitch on this site… do a search…

https://mergersandinquisitions.com/oil-gas-stock-pitch/

Beyond that, sorry, we cannot look for reports and then share them with you or we’d be inundated with requests to do that every day.

No worries. Thanks!

Hi! Brian! Do u know how investment bankers design and layout an equity research? the software they use. like MS Word, Adobe Indesign or something…? And how to create and layout one? Thanks

where can I get free equity research report? I am a Chinese student and now study in Australia. Is the Morning Star a good resource for research report?

Get a TD Ameritrade to access free reports there for certain companies.

How do you view the ER industry since the trading commission has been down 50% since 2007. And there are new in coming regulation governing the ER reports have to explicitly priced and funds need to pay for the report explicity rather than as a service comes free with brokerage?

In addition the whole S&T environment is becoming highly automated.

People have been predicting the death of equity research for over a decade, but it’s still here. It may not be around in 100 years, but it will still be around in another 10 years, though it will be smaller and less relevant.

Yes, things are becoming more automated, but the actual job of an equity research analyst or associate hasn’t changed dramatically. A machine can’t speak with investors to assess their sentiment on a company – only humans can do that.

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All About Equity Research [The ONLY Guide You’ll Need in 2024]

Equity research is a key pillar in the world of finance that bridges the gap between companies, investors, and the market . In this guide, we will delve deep into the world of equity research, exploring its purpose, the process, the roles involved, and the skills required to succeed in this field.

We’ll also discuss the types of equity research, dissect the intricacies of equity research reports, and shed light on the exciting job opportunities this sector offers. Furthermore, we will touch upon the evolving trends in equity research and how they’re shaping the industry’s future.

Let’s get started-

What Is Equity Research?

In the world of finance, ‘equity’ refers to the ownership of assets after all debts associated with those assets are paid off. In simpler terms, if you were to sell all of your company’s assets and pay off its debts, the leftover money would represent your company’s equity. Hence, equity research is an in-depth analysis of a company’s total equity or value.

But equity research isn’t just a mere calculation of assets and liabilities. It’s a rigorous, methodical examination of all the aspects that contribute to a company’s financial performance, and thus, its equity. It is akin to a detective’s investigation, digging through layers of financial statements, market trends, sector overviews, and macroeconomic factors to arrive at a comprehensive understanding of a company’s financial standing and future prospects.

Understanding Equity Research With a Simple Example

Let’s illustrate this with an example. Suppose an equity research analyst is studying a pharmaceutical company . They won’t only look at the balance sheets or profit and loss statements. They’ll consider factors such as the company’s research and development efforts, the potential market for new drugs, any pending patents, the status of regulatory approvals, and even the broader trends in the healthcare industry.

They might investigate how the company performed during different economic conditions, how well its product pipeline compares to competitors, and how regulatory changes could impact future earnings.

The analyst will also look at macroeconomic indicators. For instance, if a new law threatens to increase the cost of a raw material vital to the company’s main product, that could impact the company’s future profitability, and the analyst would need to factor this into their analysis.

At the end of this investigation, the equity research analyst forms an estimation of the company’s intrinsic value, which they then compare to its current market value . If the intrinsic value is significantly higher than the market value, the analyst might recommend the stock as a good buy, as it’s likely undervalued . On the other hand, if the market value is much higher than the intrinsic value, the stock might be overpriced , and the analyst might recommend investors to sell or avoid it.

Equity research, in essence, is this deep dive into the world of a company’s financials , providing a guide to investors, helping them navigate through their investment journey. It’s the compass that points towards profitable investment decisions.

Roles and Responsibilities of an Equity Research Analyst

An Equity Research Analyst acts as a conduit between investors and the ever-dynamic financial markets, providing them with information and insights necessary to make sound investment decisions. Let’s see how their day looks like –

Deep-Dive Research

Their day-to-day responsibilities start with conducting extensive research i nto specific companies or sectors. They meticulously scrutinize financial reports, balance sheets, cash flow statements, and earnings releases. However, their research isn’t limited to mere numbers. They also keep tabs on industry trends, regulatory changes, and macroeconomic factors that could impact the companies they are following.

Example – An analyst is covering technology companies, they need to be abreast of developments like privacy legislation, advancements in artificial intelligence, or shifts in consumer behavior towards tech products. This requires constant learning and staying updated with news and trends in the sector.

Financial Modelling and Valuation

Equity Research Analysts are also adept at creating complex financial models . They use these models to project future earnings , based on various potential scenarios. Based on these projections, they calculate the intrinsic value of a company’s shares.

Example – Let’s say there’s an auto company that’s planning to launch a new electric car model. An Equity Research Analyst covering this company would build a financial model to estimate additional revenues from this new model, the costs associated with its production, the potential impact on the company’s market share, and so on. They would then use these estimates to calculate what this could mean for the company’s future profitability , and how it could impact the company’s share price.

Also Read: All About Financial Modeling [The ONLY Guide You’ll Need in 2024]

Writing Equity Research Reports

One of the key deliverables of an Equity Research Analyst is the Equity Research Report. These reports encapsulate the findings of their research and analysis in a format that’s digestible for investors. The report typically includes

• An overview of the company
• A summary of recent developments
• Detailed financial analysis
• Future projections, and
• Most importantly, an investment recommendation (buy, hold, or sell)

The equity research reports have a broad audience – institutional investors, retail investors, fund managers, and sometimes, the companies themselves. Given the diverse readership, the reports need to be accurate, unbiased, and clear. A well-written report can significantly influence investment decisions, underscoring the responsibility on the analyst’s shoulders.

Communication and Presentation

Finally, an Equity Research Analyst often has to present their findings to clients, fund managers, or within their own organizations. This could be through conference calls, presentations, or even TV interviews. Hence, strong communication skills and the ability to explain complex financial concepts in a simple way are essential traits for an Equity Research Analyst.

The Process of Equity Research

The process of equity research is like peeling back the layers of an onion to reveal the core truth about a company’s financial health and potential. It involves multiple steps, each equally important in creating a well-rounded view of the company.

Step 1: Selection of Companies

The first step in equity research is the selection of companies. Analysts often specialize in specific sectors or industries , such as technology, healthcare, or energy. The choice of companies to analyze within those sectors depends on several factors, including market capitalization, relevance in the industry, or particular events like mergers or IPOs.

Step 2: Industry Analysis

After choosing the companies, analysts start with a broad industry analysis . They look at the industry size, growth rate, major competitors, regulatory environment, and key trends. This macro view provides context for the company’s operations and potential growth.

Step 3: Company Analysis

Once they’ve understood the industry context, analysts move onto detailed company analysis. This involves a deep dive into the company’s financial statements, including balance sheets, income statements, and cash flow statements. They also examine the company’s business model, products or services, competitive positioning, management quality, and corporate governance practices.

Step 4: Financial Modelling and Projections

After developing an in-depth understanding of the company, analysts use this information to build detailed financial models. These models involve projections of the company’s future revenues, expenses, and earnings, often under different scenarios. For example, they might project how the company’s earnings could be affected under different economic conditions or if a new product line succeeds or fails.

Step 5: Valuation

The next step is the valuation, where analysts use techniques such as Discounted Cash Flow (DCF) analysis, Price/Earnings (P/E) ratio, or Comparables analysis to estimate the intrinsic value of the company’s shares . This value is then compared with the current market price to determine whether the company’s shares are undervalued or overvalued.

Step 6: Report Writing and Recommendation

Finally, analysts compile their research findings, financial model outputs, and valuation results into a comprehensive equity research report . The report also includes a recommendation, typically a ‘buy’, ‘hold’, or ‘sell’ for the company’s stock based on the analyst’s analysis.

It’s important to note that equity research is a continuous process . Companies release financial information quarterly, industry trends evolve, and macroeconomic conditions change. Therefore, analysts regularly update their reports to reflect the most recent data and insights.

Key Aspects of Equity Research Reports

An Equity Research Report is a comprehensive document that encapsulates an analyst’s view of a company, sector, or industry . These reports are essential tools that investors use to understand and navigate the financial markets. Here are the key aspects of an equity research report:

Executive Summary

Every report begins with an executive summary that provides a brief overview of the analyst’s findings and recommendations. This part is designed to provide a quick snapshot of the key takeaways from the report.

Company Overview

This section provides a detailed description of the company , including its history, management, product or service offerings, and business model. It also includes an overview of the company’s key strategies and competitive advantages. This information helps readers understand the company’s operations and its position within its industry.

Industry Overview

The industry overview offers an analysis of the broader sector or industry in which the company operates. It covers aspects such as industry size, growth rates, key trends, major competitors, and regulatory environment . This context is crucial in understanding the company’s potential for growth and the challenges it might face.

Financial Analysis

In this part of the report, the analyst presents their detailed analysis of the company’s financials. This usually includes examination of the i ncome statement, balance sheet, and cash flow statement. The analyst may also discuss financial ratios, growth rates, profitability metrics, and other key financial indicators. This section provides insights into the company’s financial health and performance.

Financial Projections and Valuation

The heart of the equity research report is the financial projections and valuation section. Here, the analyst lays out their forecasts for the company’s future earnings and financial performance. They also present their valuation of the company’s stock, typically arrived at using financial modelling techniques like Discounted Cash Flow (DCF), Price/Earnings (P/E) ratio, or Comparables analysis.

Investment Thesis and Recommendations

In the final section, the analyst presents their investment thesis – their argument for why an investor should or should not invest in the company’s stock. They also provide a clear investment recommendation, typically a ‘buy’, ‘hold’, or ‘sell’ rating. This section is the culmination of all the analyst’s research and analysis.

Types of Equity Research

Equity research is carried out by different types of institutions for various purposes . Understanding the differences among them can help in comprehending the perspectives and potential biases in the research. Here are the key types of equity research:

Sell-Side Equity Research

Sell-side analysts work for brokerage firms and investment banks. Their research is primarily aimed at selling securities, providing investment recommendations, and facilitating transactions , which helps their companies earn brokerage and transaction fees. Sell-side research is generally freely available, and the firms distribute it widely to attract business from institutional and retail investors.

Buy-Side Equity Research

Buy-side analysts work for institutional investors such as mutual funds, hedge funds, pension funds, and insurance companies. They conduct research to assist the fund’s managers in making investment decisions for the fund’s portfolio. Their research is typically proprietary and is used solely for the benefit of the fund that employs them.

Independent Equity Research

Independent equity research firms are third-party entities that aren’t directly involved in trading securities. They sell their research to hedge funds, asset managers, and sometimes individual investors . Since these firms don’t have a trading department and aren’t seeking investment banking business, their research is perceived as unbiased. They have gained popularity over the past decade due to their perceived objectivity.

Internal Equity Research

Large corporations often have their internal equity research teams. These analysts perform research on competitors, suppliers, and customers to assist in strategic decision-making. This research is generally not available to the public as it is used for internal corporate strategy and planning purposes.

Each type of equity research has its strengths and weaknesses , and they all play essential roles in the financial ecosystem. Understanding their differences and potential biases can help investors and decision-makers use this research more effectively.

Skills Required for a Career in Equity Research

Equity research is a challenging and intellectually demanding field that requires a combination of hard and soft skills. If you’re considering a career in equity research, here are the key skills you’ll need to succeed:

Financial Literacy

A fundamental understanding of financial principles is the bedrock of equity research. This includes knowledge of financial accounting, corporate finance, economics, and statistics . Analysts need to be comfortable reading and interpreting financial statements, calculating financial ratios, and understanding economic indicators.

Analytical Skills

Equity research involves extensive data analysis. Analysts need to sift through large volumes of data, spot trends, interpret complex information , and draw meaningful conclusions. Strong analytical skills are crucial to understand the past performance of a company and make accurate forecasts about its future.

Financial Modelling

Financial modelling is an essential tool in an equity researcher’s arsenal. Analysts use financial models to forecast a company’s future revenues and earnings and estimate the intrinsic value of its shares. Proficiency in Excel and familiarity with valuation techniques such as discounted cash flow (DCF) and comparable company analysis is a must.

Attention to Detail

The devil is often in the details when it comes to equity research. Analysts need to pay close attention to the footnotes in financial statements, the nuances in a CEO’s comments during an earnings call, or the implications of a regulatory change. A small detail can sometimes have a significant impact on a company’s valuation.

Communication Skills

Analysts need to communicate their findings effectively. This includes writing clear, concise research reports that can be understood by people without a financial background. It also involves presenting and defending their views to clients, colleagues, and sometimes, the media. Strong written and verbal communication skills are vital.

Curiosity and Continuous Learning

Equity research analysts need to stay on top of industry trends, economic news, and changes in financial regulations. This requires a natural curiosity and a commitment to continuous learning. An analyst who stops learning risks falling behind in the fast-paced world of finance.

Job Opportunities in Equity Research

Equity research provides a host of job opportunities in a range of firms including investment banks, asset management companies, research firms etc. Let’s understand these roles, their typical responsibilities, average salaries in India, and potential employers:

Equity Research Analyst

As an Equity Research Analyst, you’ll delve deep into company financials, industry trends, and macroeconomic factors to provide investment recommendations. You may focus on a specific sector or cover a broad range of industries. This role involves financial modelling, report writing, and communicating with clients and company representatives.

Average Salary in India : ₹ 7-10 Lakhs per annum Employers : Major employers include JP Morgan, Goldman Sachs, Morgan Stanley, Credit Suisse, Kotak Securities.

Associate Analyst

Those just starting in equity research often begin as Associate Analysts. Working closely with senior analysts, Associates help in collecting data, building financial models, and drafting research reports. It’s a role that provides a solid foundation in the fundamentals of equity research.

Average Salary in India : ₹ 4-6 Lakhs per annum Employers : Firms like Ernst & Young, KPMG, Deloitte, and PwC.

Senior Analyst/Research Director

With experience, an Analyst or Associate can move up to become a Senior Analyst or Research Director. These roles involve more strategic oversight, including deciding which companies or sectors to cover, mentoring junior analysts, and representing the firm to clients, the media, and the public.

Average Salary in India : ₹ 12-20 Lakhs per annum Employers : Multinational banks and brokerage firms like Citigroup, Barclays, ICICI Securities.

Portfolio Manager

Some equity research analysts transition into portfolio management roles over time. As a Portfolio Manager, you would use the insights from equity research to make investment decisions for a fund or portfolio. This role requires a deep understanding of financial markets, risk management, and asset allocation strategies.

Average Salary in India : ₹ 15-25 Lakhs per annum Employers : Asset management companies like HDFC Asset Management, ICICI Prudential, Reliance Nippon Life Asset Management.

Equity Strategist

Equity Strategists work with a macro view, examining factors like economic indicators, industry trends, and market data to provide investment strategies and identify attractive sectors or themes in the market. While less company-specific than an analyst role, strategists still utilize many of the research and analytical skills developed in equity research.

Average Salary in India : ₹ 10-18 Lakhs per annum Employers : Major investment banks and financial services firms like Deutsche Bank, HSBC, UBS.

Investor Relations Role

Equity research analysts can also move into investor relations roles within companies. These professionals communicate with shareholders, analysts, and the broader financial community. Understanding the perspective of equity analysts is valuable in this role since you’ll be communicating key financial and strategic information about the company to the investment community.

Average Salary in India : ₹ 9-15 Lakhs per annum Employers : Large corporations across industries like Tata Group, Reliance Industries, Infosys, Wipro.

Sales & Trading

Some equity research professionals transition into roles in sales & trading. In this capacity, they use their deep knowledge of industries and companies to advise clients on investment strategies, facilitate transactions, and connect buyers and sellers in the financial market.

Average Salary in India : ₹ 8-16 Lakhs per annum Employers : Banks and brokerage firms such as Axis Bank, HDFC Bank, Edelweiss, Sharekhan.

Trends and Future of Equity Research

Equity research, like all facets of finance, is continually evolving in response to changing regulations, technologies, and investor behaviours. Here are some of the current trends and potential future developments in the field:

Digitization and Automation

The digitization of financial information and the development of advanced data analytics tools are transforming the way analysts conduct research. Automated tools are increasingly being used to collect and process data, allowing analysts to focus more on interpreting the data and generating insights.

For example , artificial intelligence (AI) and machine learning (ML) tools are now used to analyze financial statements, track sentiment in news articles and social media, and even to predict future stock price movements.

Increased Regulatory Oversight

In recent years, regulators around the world have been placing increased scrutiny on equity research to promote transparency and prevent conflicts of interest.

For example , the European Union’s MiFID II regulations now require investment firms to separate the costs of research from trading fees. This has led to more demand for independent research and is forcing sell-side firms to demonstrate the value of their research more explicitly.

Demand for ESG Analysis

There’s a growing trend among investors to consider Environmental, Social, and Governance (ESG) factors in their investment decisions. This is leading to increased demand for equity research that includes analysis of companies’ ESG performance. Analysts are now required to assess factors such as a company’s carbon footprint, its labor practices, and its board diversity in addition to its financial performance.

Crowdsourced Equity Research

Crowdsourced equity research platforms, where independent analysts and investors share their research and opinions, are gaining popularity. These platforms offer a wider range of views and analyses than traditional equity research sources. However, they also pose new challenges in terms of verifying the credibility of the information.

Emergence of Alternative Data

Equity researchers are increasingly using alternative data – information derived from non-traditional sources like s ocial media sentiment, satellite imagery, or website traffic data – to gain additional insights into a company’s performance. These data sources can provide real-time indicators that can complement traditional financial data and provide an edge to the analysts.

Equity research serves as a vital link between companies, investors, and the financial markets . It involves detailed analysis of financial data, sector trends, and macroeconomic factors to formulate clear, actionable investment recommendations.

With its varied roles – from Equity Research Analysts to Portfolio Managers, and from Equity Strategists to Investor Relations Roles – this field offers numerous career paths, each with its own unique blend of challenges and rewards.

Whether you’re a finance enthusiast exploring career paths or an investor seeking insights into your investment choices, understanding the nuances of equity research is highly beneficial. So take the leap, dive deep, and explore the rewarding world of equity research!

Frequently Asked Questions

Equity research analysts examine financial data, conduct analyses, build financial models, and write research reports to make investment recommendations.

Skills include strong analytical abilities, understanding of financial markets, proficiency in financial modeling, and excellent communication skills.

CA Yash Jain

Bain & Co. 5000+ Students Trained in the field of Investment Banking, FRM & CFA

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The Value of Equity Research

Equity research is an invaluable asset for anyone looking to stay up-to-date on market and industry trends. In this guide, you will learn about the type of information contained in equity research, the value it offers to corporate professionals, and how the most advanced teams are already leveraging the expertise of Wall Street’s top analysts to inform critical business decisions.

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Introduction.

Equity research, which forms a multi-billion dollar industry for investment banks, is produced by thousands of analysts worldwide to provide the market with valuable information on companies, industries, and market trends. Today, over 90% of equity research is consumed by fund managers, who have the Wall Street relationships to acquire it and the analyst resources to mine it for insights. For corporate strategy professionals who lack this access, however, equity research has historically been challenging to obtain and navigate.

To help corporations circumvent these challenges, AlphaSense has introduced Wall Street Insights, the first and only equity research collection purpose-built for the corporate user. Through the AlphaSense platform, any business making strategic plans or product decisions, conducting competitive analysis, evaluating M&A, or engaging in investor relations can now tap into the deep industry expertise of Wall Street’s top analysts.

What is Equity Research?

Equity research is developed by sell-side firms to help investors and hedge fund managers discover market opportunities and make informed investment decisions. Increasingly, this expert analysis has also been identified by forward-looking corporations as a highly valuable tool to inform strategic decision-making.

There are thousands of sell-side firms that employ expert analysts around the globe to write equity research for the market. The majority of firms producing equity research are hyper-focused and only have one or two analysts developing reports on a specific industry. However, larger firms, such as Morgan Stanley and Bank of America, collectively employ thousands of analysts to write reports on thousands of public companies–covering everything from TMT giants to niche products.

Equity research analysts are deep subject matter experts who are often former executives, industry veterans, or academics. These analysts conduct in-depth research and publish reports on corporations, industries, and macro trends, offering an expert lens into a subject.

Historically, over 90% of equity research was consumed by buy-side fund managers, who had the Wall Street relationships to acquire it and the analyst resources to mine it for insights. For buy-side professionals, equity research is a critical tool to inform sound investment decisions backed by expert insights.

Today, equity research is increasingly relied upon by corporate teams as a high-value source of information. These teams leverage equity research to make strategic business plans, conduct competitive analysis, evaluate mergers and acquisitions, and make product and marketing decisions. For corporations, the value of equity research lies in the detailed coverage of their company, their competitors, and how they are performing related to the marketplace they are within.

What is an Equity Research Report?

An equity research report is a document prepared by an equity research analyst that often provides insight on whether investors should buy, hold, or sell shares of a public company. In an equity research report, an analyst lays out their recommendation, target price, investment thesis, valuation, and risks.

There are multiple forms of equity research, including (but not limited to):

An update report that highlights the latest news, company announcements, earnings reports, Buy Sell Hold ratings, M&A activity, anything that impacts the value of the company.

A comprehensive company report that is compiled when an analyst or firm initiates their coverage of a stock. Initiation reports cover all of the divisions and products of a company in-depth to provide a baseline of what the company is and how it is performing. Initiation reports can be tens to hundreds of pages long, depending on the complexity of a company.

General industry updates that cover a group of similar companies within a sector. Industry-specific reports typically dive into additional factors such as loan growth, interest rates, interest income, net income, and regulatory capital.

A report compiled by research firms either daily or weekly. These reports can often be a great place to get more in-depth insight on commodities and also get market opinions from commodity analysts or traders who write the reports.

A quick 1-2 page report that comments on a news release from a company or other quick information

What is Included in a Typical Equity Research Report?

Research reports don’t need to follow a specific formula. Analysts at different investment banks have some latitude in determining the look and feel of their reports. But more often than not, research reports follow a certain protocol of what investors expect them to look like.

A typical equity research report includes in-depth industry research, management analysis, financial histories, trends, forecasting, valuations, and recommendations for investors. Sometimes called broker research reports or investment research reports, equity research reports are designed to provide a comprehensive snapshot that investors or corporate leaders can leverage to make informed decisions.

Here’s a quick overview of what a standard equity research report covers:

This section covers events, such as quarterly results, guidance, and general company updates.

Upgrades/Downgrades are positive or negative changes in an analyst’s outlook of a particular stock valuation. These updates are usually triggered by qualitative and quantitative analysis that contributes to an increase or decrease in the financial valuation of that security.

Estimates are detailed projections of what a company will earn over the next several years. Valuations of those earnings estimates form price targets. The price target is based on assumptions about the asset’s future supply & demand and fundamentals.

Management Overview and Commentary helps potential investors understand the quality and makeup of a company’s management team. This section can also include a history of leadership within the company and their record with capital allocation, ESG, compensation, incentives, stock ownership. Plus, an overview of the company’s board of directors.

This section covers competitors, industry trends, and a company’s standing among its sector. Industry research includes everything from politics to economics, social trends, technological innovation, and more.

Historical Financial Results typically cover the history of a company’s stock, plus expectations based on the current market and events surrounding it. To determine if a company is at or above market expectations, Analysts must deeply understand the history of a specific industry and find patterns or trends to support their recommendations.

Based on the market analysis, historical financial results, etc., an analyst will run equity valuation models. In some cases, analysts will run more than one valuation model to determine the worth of company stock or asset.

Absolute valuation models : calculates a company’s or asset’s inherent value.

Relative equity valuation models : calculates a company’s or asset’s value relative to another company or asset. Relative valuations base their numbers on price/sales, price/earnings, price/cash flow.

An equity research analyst’s recommendation to buy, hold, or sell. The analyst also will have a target price that tells investors where they expect the stock to be in a year’s time.

What Does an Equity Research Analyst Do?

Equity research analysts exist on both the buy-side and the sell-side of the financial services market. Although these roles differ, both buy-side and sell-side analysts produce reports, projections, and recommendations for specific companies and stocks.

An equity research analyst specializes in a group of companies in a particular industry or country to develop high-level expertise and produce accurate projects and recommendations. Since ER analysts generally focus on a small set of stocks (5-20), they become specialists in those specific companies and industries that they evaluate or follow. These analysts monitor market data and news reports and speak to contacts within the companies/industries they study to update their research daily.

Analysts need to comprehend everything about their ‘coverage’ to give investment endorsements. Equity research analysts must be conversant with the business regulations and regime policies within the country to decide how it will affect the market environment and business in general. The more you understand the industries in detail, the easier it will be for you to decipher market dynamics.

One prevalent aspect of an equity research analyst’s job is building and maintaining valuable relationships with corporate leaders, clients, and peers. Equity research is largely about an analyst’s ability to service clients and provide insightful ideas that positively influence their investing strategy.

EQUITY RESEARCH ANALYSTS:

• Analyze stocks to help portfolio managers make better-informed investment decisions.
• Analyze a stock against market activity to predict a stock’s outlook.
• Develop investment models and provide trading strategies.
• Provide expertise on markets and industries based on their competitive analysis, business analysis, and market research.
• Use data to model and measure the financial risk associated with particular investment decisions.
• Understand the details of various markets to compare a company’s and sector’s stock

Buy-Side vs. Sell-Side Analysts

Although the roles of buy-side and sell-side analysts do overlap in some respects, the purpose of their research differs.

How Do Corporates Currently Access Equity Research?

If you were to Google “equity research reports,” you would not get access to equity research, earnings call transcripts or trade journals. You would, however, discover an unmanageable amount of noise to sift through.

Accessing equity research reports is highly dependent on relationships and entitlements, particularly for corporate teams. Unlike financial firms and investor relations teams, who can access equity research by procuring the right entitlements, corporate teams have a much harder time finding and purchasing high-quality equity research.

If you were to search online for equity research, for example, you would be presented with sub-par options such as:

Some websites allow you to search for research reports on companies or by firms. Some of the reports are free, but you must pay for most of them. Prices range from just $15 to thousands of dollars.

If you want just the bottom-line recommendations from analysts, many sites summarize the data. Nearly all the websites that provide stock quotes also compile analyst recommendations, however, you will only get the big picture and not any of the detailed analysis.

Some independent research providers sell their reports directly to investors. These reports typically include an overview of what a stock’s price could be, plus an analysis of the company’s earnings. These reports often cost less than $100 but can be more.

The majority of equity research is completely unsearchable, which is why AlphaSense’s Wall Street Insights is changing the game for corporations globally. Now, with WSI, corporations can leverage this high-quality research to augment their understanding of specific companies and industries; plus, AlphaSense’s corporate clients can now conduct more meaningful analysis and make more data-driven decisions.

Real-Time Research : Real-Time research is available to eligible users (based on an entitlement) immediately upon publication by the broker. Financial Services users with entitlements are the primary consumers of real-time research, while some Corporate professionals are also eligible. Payment for real-time research is made directly from clients to brokers through trading commissions or hard dollar agreements.

Aftermarket Research : Aftermarket research is a collection of many of the same documents as the real-time collection, but it is available after a zero to fifteen-day delay. Investment bankers, consultants, and corporate users are the primary consumers of Aftermarket research.

What is Wall Street Insights?

Wall Street Insights is the first and only equity research collection purpose-built for the corporate market, providing corporations unprecedented access to a deep pool of equity research reports from thousands of expert analysts.

Through partnerships with Morgan Stanley, Bank of America, Barclays, Bernstein, Bernstein Autonomous, Cowen, Deutsche Bank, Evercore ISI, HSBC, and others, corporate professionals can now access the world’s most revered equity research, indexed and searchable in the AlphaSense platform.

From macro market trends and industry analyses to company deep-dives, the Wall Street Insights content collection provides corporate professionals with a 360-degree view of every market. With the valuable expertise of thousands of analysts on your side, corporate teams can quickly compare insights, validate internal assumptions, and generate new ideas to guide critical business decisions and strategies.

In terms of search and accessibility, Wall Street Insights is the first of its kind. Not only does AlphaSense offer hard-to-find equity research reports, but we also provide a robust and seamless search experience.

What Research Do You Get Access to with WSI?

Get access to the world’s leading equity research with Wall Street Insights. Download the e-book to learn more about equity research from Morgan Stanley, Barclays, Bernstein, Deutsche Bank, and more.

“We are delighted to partner with AlphaSense to expand access to Morgan Stanley’s global research platform,” says Simon Bound, Global Head of Research at Morgan Stanley. We have over 600 publishing analysts covering companies, industries, commodities, and macroeconomic developments across more than 50 countries. Morgan Stanley will bring corporates a unique perspective from our best in class analysts, a global platform, and a collaborative culture that enables us to unravel the most complex market and industry trends.”

How Can Companies Leverage Equity Research?

Discover how the world’s most innovative companies leverage Wall Street Insights to make critical business decisions every day. Download the e-book to read real case studies from a Corporate Development team and a Corporate Strategy team.

“AlphaSense’s corporate users are typically Corporate Strategy, Corporate Development, and Investor Relations professionals. Today, thousands of enterprises rely on equity research to power data-driven decision making. These teams leverage equity research reports to:”

• Create investment ideas
• Monitor peers in real-time (and discover what equity research is being produced about them)
• Model and evaluate companies (for M&A or general benchmarking)
• Dive deep into customers, partners, and prospects
• Get up-to-speed quickly on specific industry trends
• Prepare for earnings season

Ready to explore the world’s leading equity research

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How to Write an Equity Research Report

By Brian Dzingai |

 Reviewed By Rebecca Baldridge |

November 15, 2022

What is an Equity Research Report?

An equity research report may focus on a specific stock or industry sector, currency, commodity, or fixed-income instrument, or even on a geographic region or country, and generally make buy or sell recommendations. These reports are produced by a variety of sources, ranging from market research firms to in-house research departments at large financial institutions or boutique investment banks.

Key Learning Points

• An equity research report is a document prepared by an analyst that provides a recommendation to buy, hold, or sell shares of a public company. 
• An equity research report is a document prepared by an analyst who is part of an investment research team in a brokerage firm or investment bank
• It provides an overview of the business, the industry it operates in, the management team, the company’s financial performance, and risks, and includes a target price and investment recommendation.
• It is intended to help an investor decide whether to invest in a stock.

Equity Research Report Structure

An equity research report can include varying levels of detail, and although there is no industry standard when it comes to formatting, there are common elements to all equity research reports. This guide includes some fundamental features and information that should be considered essential to any research report, as well as some tips for making your analysis and report as effective as possible. 

Access the download to see a real-world example of an Equity Research Report, annotated to show each element discussed below. 

Basic Information

The research report should begin with basic information about the firm, including the company’s ticker symbol, the primary exchange where its shares are traded, the primary sector and industry in which it operates, the current stock price and market capitalization, the target stock price, and the investment recommendation. 

In addition, a security’s liquidity and float are important considerations for the equity analyst. The liquidity of a stock refers to the degree to which it can be purchased and sold without affecting the price. The analyst should understand that periods of financial stress can affect liquidity. A stock’s float refers to the number of shares that are publicly owned and available for trading and generally excludes restricted shares and insider holdings. The float of a stock can be significantly smaller than its market capitalization and thus is an important consideration for large institutional investors, especially when it comes to investing in companies with smaller market capitalizations. Consequently, a relatively small float deserves mention. Finally, it is good practice to identify the major shareholders of a firm. 

Business Description 

This section should include a detailed description of the company and its products and services. It should convey a clear understanding of the company’s economics, including a discussion of the key drivers of revenues and expenses. Much of this information can be sourced from the company itself and from its regulatory filings as well as from industry publications. 

Industry Overview and Competitive Positioning

This section should include an overview of the industry dynamics, including a competitive analysis of the industry. Most firms’ annual reports include some discussion of the competitive environment. A group of peer companies should be developed for competitive analysis. The “Porter’s Five Forces” framework for industry analysis is an effective tool for examining the health and competitive intensity of an industry. Production capacity levels, pricing, distribution, and stability of market share are also important considerations. 

It is important to note that there are different paths to success. Strength of brand, cost leadership, and access to protected technology or resources are just some of the ways in which companies set themselves apart from the competition. Famed investor Warren Buffett describes a firm’s competitive advantage as an economic “moat.” He says, “In business, I look for economic castles protected by unbreachable moats.” 

Investment Summary

This section should include a brief description of the company, significant recent developments, an earnings forecast, a valuation summary, and the recommended investment action. If the purchase or sale of a security is being advised, there should be a clear and concise explanation as to why the security is deemed to be mispriced. That is, what is the market currently not properly discounting in the stock’s price, and what will prompt the market to re-price the security? 

This section should include a thorough valuation of the company using conventional valuation metrics and formulas. Equity valuation models can derive either absolute or relative values. Absolute valuation models derive an asset’s intrinsic value and generally take the form of discounted cash flow models. Relative equity valuation models estimate a stock’s value relative to another stock and can be based on a number of different metrics, including price/sales, price/earnings, price/cash flow, and price/book value. Because model outputs can vary, more than one valuation model should be used. 

Financial Analysis

This section should include a detailed analysis of the company’s historical financial performance and a forecast of future performance. Financial results are commonly manipulated to portray firms in the most favorable light. It is the responsibility of the analyst to understand the underlying financial reality. Accordingly, a careful reading of the footnotes of a company’s financial disclosures is an essential part of any examination of earnings quality. Non-recurring events, the use of off-balance-sheet financing, income and reserve recognition, and depreciation policies are all examples of items that can distort a firm’s financial results. 

Financial modeling of future results helps to measure the effects of changes in certain inputs on the various financial statements. Analysts should be especially careful, however, about extrapolating past trends into the future. This is especially important in the case of cyclical firms. Projecting forward from the top or bottom of a business cycle is a common mistake. 

Finally, it can be informative to use industry-specific financial ratios as part of the financial analysis. Examples include proven reserves/shares for oil companies, revenue/subscribers for cable or wireless companies, and revenue/available rooms for the hotel industry. 

Investment Risks

This section should address potential negative industry and company developments that could pose a risk to the investment thesis. Risks can be operational or financial or related to regulatory issues or legal proceedings. 

Although companies are generally obligated to discuss risks in their regulatory disclosures, risks are often subjective and hard to quantify (e.g., the threat of a competing technology). It is the job of the analyst to make these determinations. Of course, disclosures of “qualified opinions” from auditors and “material weakness in internal control over financial reporting” should be automatic red flags for analysts. 

Environmental, Social & Governance (ESG)

This section should include information on how the company manages the relationships related to Environmental, Social, and Governance. Below are some examples within these three areas that can have a lasting impact on the company’s short- and long-term prospects:

• E nvironmental – how is the company working towards the conservation of the natural world? This can include climate change and carbon emissions, air and water pollution, energy efficiency, waste management, and more. 
• S ocial – how does the company consider people and relationships? This can include community relations, human rights, gender and diversity, labor standards, customer satisfaction, and employee engagement. 
• G overnance – what are the standards for running the company? This can include board composition, audit committee structure, executive compensation, succession planning, leadership experience, and bribery and corruption policies. 

Enroll in our online ESG course and learn to identify the principles of ESG and how they are applied to investment strategies.

If you are interested in a career as an equity research analysts or in fixed income research, our online course covers all the key skills needed as either a sell side analyst in an investment bank or a buy side analyst working in an investment management firm.  

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• Research in Bull & Bear Markets

How Equity Research Is Changing

• Who Pays for Research?
• The Role of Fee-Based Research

The Bottom Line

The changing role of equity research.

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

The role of equity research is to provide information to the market. A lack of information creates inefficiencies that result in stocks being misrepresented (whether over or undervalued). Analysts use their expertise and spend a lot of time analyzing a stock, its industry, and its peer group to provide earnings and valuation estimates. Research is valuable because it fills information gaps so that each individual investor does not need to analyze every stock. This division of labor makes the market more efficient.

The title of this article is perhaps a bit misleading, because the role of equity research really hasn't changed since the first U.S. stock trade occurred under the buttonwood tree on Manhattan Island. What has changed is the economic and trading environments (e.g. the character of bull and bear markets) that influence research.

Key Takeaways

• Equity research is a key piece of Wall Street analysis, used by investors large and small to make better-informed investment decisions in the stock market.
• Often research is funded by institutional investors on a fee-basis or using soft dollars.
• Depending on whether the market is in a bull or bear mode, equity research has begun to shift its lens of analysis and the types of reports issued.

Research in Bull and Bear Markets

In every bull market, some excesses become apparent only in the bear market that follows. Whether it is dotcoms or organic foods, each age has its mania that distorts the normal functioning of the market. In a rush to make money, rationality is the first casualty. Investors rush to jump on the bandwagon and the market over-allocates capital to the "hot" sector(s). This herd mentality is the reason why bull markets have funded so many "me-too" ideas throughout history.

Research is a function of the market and is influenced by these swings. In a bull market, investment bankers , the media and investors pressure analysts to focus on the hot sectors. Some analysts morph into promoters as they ride the market. Those analysts that remain, rational practitioners, are ignored, and their research reports go unread.

Seeking to blame someone for investment losses is a normal event in bear markets. It happened in the 1930s, 1970s, during the dot com crash and the financial crisis of 2008, too. Some of the criticisms are deserved, but generally, the need to provide information about companies has not changed.

To discuss the role of research in today's market , we need to differentiate between Wall Street research and other research. The major brokerages provide Wall Street research—typically sell-side firms—both on and off Wall Street. Other research is produced by independent research firms and small boutique brokerage firms.

This differentiation is important. First, Wall Street research has become focused on large-cap , very liquid stocks, and ignores the majority of publicly traded stocks. To remain profitable, Wall Street firms have focused on big-cap stocks to generate highly lucrative investment banking deals and trade profits, but also face the daunting task of cutting costs.

Those companies that are likely to provide the research firms with sizable investment banking deals are the stocks that are determined worthy of being followed by the market. The stock's long-term investment potential is often secondary.

Other research is filling the information gap created by Wall Street. Independent research firms and boutique brokerage firms are providing research on the stocks that have been orphaned by Wall Street. This means that independent research firms are becoming a primary source of information on the majority of stocks, but investors are reluctant to pay for research because they don't know what they are paying for until well after the purchase. Unfortunately, not all research is worth buying, as the information can be inaccurate and misleading.

These days there is a great deal of research that is provided for free to clients via email. Even at essentially zero cost to the investor, a large majority of the research goes unread.

Who Pays for Research? Big Investors Do!

The ironic thing is that while research has proven to be valuable, individual investors do not seem to want to pay for it. This may be because, under the traditional system, brokerage houses provided research to gain and keep clients. Investors just had to ask their brokers for a report and received it at no charge. What seems to have gone unnoticed is that the investor commissions paid for that research.

A good indicator of the value of research is the amount institutional investors are willing to pay for it. Institutional investors typically hire their own analysts to gain a competitive edge over other investors. Although spending on equity research analysts has significantly declined in recent years, institutions may also pay for the sell-side research they receive (either with dollars or by giving the supplying brokerage firm trades to execute).

European regulations that went into effect in 2018, known as  MiFID II , require asset managers to fund external research from their own profit and loss account (P&L) or through research payments that are tracked with clear audit trails. This will lead to billing clients for research and trading separately.

The Role of Fee-Based Research

Fee-based research increases market efficiency and bridges the gap between investors who want research (without paying) and companies who realize that Wall Street is not likely to provide research on their stock. This research provides information to the widest possible audience at no charge to the reader because the subject company has funded the research.

It is important to differentiate between objective fee-based research and research that is promotional. Objective fee-based research is similar to the role of your doctor. You pay a doctor not to tell you that you feel good, but to give you their professional and truthful opinion of your condition.

Legitimate fee-based research is a professional and objective analysis and opinion of a company's investment potential. Promotional research is short on analysis and full of hype. One example of this is the email reports and misleading social media posts about the penny stocks that will supposedly triple in a short time.

Legitimate fee-based research firms have the following characteristics:

• They provide analytical, not promotional services.
• They are paid a set annual fee in cash; they do not accept any form of equity, which may cause conflicts of interest .
• They provide full and clear disclosure of the relationship between the company and the research firm so investors can evaluate objectivity.

Companies that engage a legitimate fee-based research firm to analyze their stock are trying to get information to investors and improve market efficiency.

Such a company is making the following important statements:

• It believes its shares are undervalued because investors are not aware of the company.
• It is aware that Wall Street is no longer an option.
• It believes that its investment potential can withstand objective analysis.

The National Investor Relations Institute (NIRI) was probably the first group to recognize the need for fee-based research. In January 2020, NIRI issued a letter emphasizing the need for small-cap companies to find alternatives to Wall Street research to get their information to investors.

The reputation and credibility of a company and research firm depends on the efforts they make to inform investors. A company does not want to be tarnished by being associated with unreliable or misleading research. Similarly, a research firm will only want to analyze companies that have strong fundamentals and long-term investment potential. Fee-based research continues to provide a professional and objective analysis of a company's investment potential, although the market for its services remains challenged in the current business environment.

CFA Institute. " MiFID II Equity Research Costs Survey ."

National Investor Relations Institute (NIRI). " NIRI Proposes Guidance on Company-sponsored Research ."

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Sell-Side vs. Buy-Side Equity Research

Step-by-Step Guide to Understanding Sell-Side vs. Buy-Side Equity Research

Learn Online Now

Buy-Side vs. Sell-Side Equity Research: What is the Difference?

Buy-Side and Sell-Side Equity Research Analysts are investment research professionals, where the primary difference comes down to the clients served.

Sell-side research analysts publish equity research reports that are readily accessible by paid clients, such as investment banks and brokerage firms.

In contrast, buy-side analysts are employed by institutional investment firms like hedge funds to perform research on public equities on behalf of their clients, or limited partners (LPs).

Table of Contents

Buy-Side vs. Sell-Side Equity Research: Comparative Analysis

Equity research report example (pdf), what is sell-side equity research, what is buy-side equity research, future of sell-side equity research.

Buy-side equity research analysts work on behalf of institutional investment firms such as mutual funds and hedge funds .

In short, buy-side analysts have “skin in the game” because their investment thesis is not merely a recommendation, but rather, a decision with real monetary consequences.

The commonality between a buy-side analyst and sell-side research analyst is that both conduct in-depth research into potential investment opportunities and closely follow the public markets to identify trends.

An equity analyst must be capable of analyzing a company’s financial statements, including understanding the unit economics that pertain to a particular company or sub-group of companies that operate in the same (or an adjacent) industry.

Once the operating drivers that determine a company’s performance is understood, the equity analyst can form a thesis on the implied valuation and growth potential of a company.

On the other hand, sell-side analysts are employed by investment banks and brokerage firms. On behalf of clients, the sell-side analysts publish recommendations to facilitate informed investment decisions.

However, while the research reports can contain practical insights surrounding a specific company (and industry), the recommendations should not be taken at face value for a multitude of reasons.

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To reiterate, sell-side equity research analysts are typically part of an investment bank and focus on a universe of stocks within one or two industries in order to provide insightful investment ideas and recommendations.

The research reports are accessed by institutional investors, as well as an investment bank’s salesforce and traders, who in turn communicate those ideas with institutional investors.

Certain financial data service providers—such as Capital IQ , Factset , Thomson and Bloomberg—can also resell the data, with notable end users being investment banking clients and M&A advisory services groups, which use sell-side equity research to help forecast company performance in presentations and pitchbooks .

Sell side equity research analysts communicate formally through research reports (and notes) that place buy, sell and hold ratings on publicly-traded companies in their coverage, as well as through less formal direct phone, email and in-person communication with institutional investors.

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Buy-side equity research analysts, on the other hand, analyze companies in order to make an actual investment in line with their firm’s investment strategy and portfolio.

Unlike sell-side research, buy-side research is not published.

Most often, buy-side analysts work for a variety of investment funds:

• Mutual Funds
• Hedge Funds
• Private Equity
• Other (Insurance, Endowment and Pension Funds)

The future of sell-side research is less certain than ever: Institutional investors typically pay for sell-side research through “soft dollar” arrangements that lump research fees directly into trade commission fees investment banks charge the buy side.

However, regulations in Europe starting in 2017 are forcing buy-side investors to unbundle the research product from trading fees and explicitly pay for research.

As a result, the value of sell-side research has been under the microscope, and it’s not looking good. The change is predicted to significantly curtail the usage of sell-side research by the buy side.

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Writing a Credible Investment Thesis

Only a third of acquiring executives actually write down the reasons for doing a deal.

By David Harding and Sam Rovit

• November 15, 2004

Every deal your company proposes to do—big or small, strategic or tactical—should start with a clear statement how that particular deal would create value for your company. We call this the investment thesis. The investment thesis is no more or less than a definitive statement, based on a clear understanding of how money is made in your business, that outlines how adding this particular business to your portfolio will make your company more valuable. Many of the best acquirers write out their investment theses in black and white. Joe Trustey, managing partner of private equity and venture capital firm Summit Partners, describes the tool in one short sentence: "It tells me why I would want to own this business."

Perhaps you're rolling your eyes and saying to yourself, "Well, of course our company uses an investment thesis!" But unless you're in the private equity business—which in our experience is more disciplined in crafting investment theses than are corporate buyers—the odds aren't with you. For example, our survey of 250 senior executives across all industries revealed that only 29% of acquiring executives started out with an investment thesis (defined in that survey as a "sound reason for buying a company") that stood the test of time. More than 40% had no investment thesis whatsoever (!). Of those who did, fully half discovered within three years of closing the deal that their thesis was wrong.

Studies conducted by other firms support the conclusion that most companies are terrifyingly unclear about why they spend their shareholders' capital on acquisitions. A 2002 Accenture study, for example, found that 83% of executives surveyed admitted they were unable to distinguish between the value levers of M&A deals. In Booz Allen Hamilton's 1999 review of thirty-four frequent acquirers, which focused chiefly on integration, unsuccessful acquirers admitted that they fished in uncharted waters. They ranked "learning about new (and potentially related) business areas" as a top reason for making an acquisition. (Surely companies should know whether a business area is related to their core before they decide to buy into it!) Successful acquirers, by contrast, were more likely to cite "leading or responding to industry restructuring" as a reason for making an acquisition, suggesting that these companies had at least thought through the strategic implications of their moves.

Not that tipping one's hat to strategy is a cure-all. In our work with companies that are thinking about doing a deal, we often hear that the acquisition is intended for "strategic" reasons. That's simply not good enough. A credible investment thesis should describe a concrete benefit, rather than a vaguely stated strategic value.

A credible investment thesis should describe a concrete benefit, rather than a vaguely stated strategic value. This point needs underscoring. Justifying a deal as being "strategic" ex post facto is, in most cases, an invitation to inferior returns. Given how frequently we have heard weak "strategic" justifications after a deal has closed, it's worth passing along a warning from Craig Tall, vice chair of corporate development and strategic planning at Washington Mutual. In recent years, Tall's bank has made acquisitions a key part of a stunningly successful growth record. "When I see an expensive deal," Tall told us, "and they say it was a 'strategic' deal, it's a code for me that somebody paid too much."

And although sometimes the best offense is a good defense, this axiom does not really stand in for a valid investment thesis. On more than a few occasions, we have been witness to deals that were initiated because an investment banker uttered the Eight Magic Words: If you don't buy it, your competitors will.

Well, so be it. If a potential acquisition is not compelling to you on its own merits, let it go. Let your competitors put their good money down, and prove that their investment theses are strong.

Let's look at a case in point: [Clear Channel Communications' leaders Lowry, Mark and Randall] Mayses' decision to move from radios into outdoor advertising (billboards, to most of us). Based on our conversations with Randall Mays, we summarize their investment thesis for buying into the billboard business as follows:

Clear Channel's expansion into outdoor advertising leverages the company's core competencies in two ways: First, the local market sales force that is already in place to sell radio ads can now sell outdoor ads to many of the same buyers, and Clear Channel is uniquely positioned to sell both local and national advertisements. Second, similar to the radio industry twenty years ago, the outdoor advertising industry is fragmented and undercapitalized. Clear Channel has the capital needed to "roll up" a significant fraction of this industry, as well as the cash flow and management systems needed to reduce operating expenses across a consolidated business.

Note that in Clear Channel's investment thesis (at least as we've stated it), the benefits would be derived from three sources:

• Leveraging an existing sales force more extensively
• Using the balance sheet to roll up and fund an undercapitalized business
• Applying operating skills learned in the radio trade

Note also the emphasis on tangible and quantifiable results, which can be easily communicated and tested. All stakeholders, including investors, employees, debtors and vendors, should understand why a deal will make their company stronger. Does the investment thesis make sense only to those who know the company best? If so, that's probably a bad sign. Is senior management arguing that a deal's inherent genius is too complex to be understood by all stakeholders, or simply asserting that the deal is "strategic"? These, too, are probably bad signs.

Most of the best acquirers we've studied try to get the thesis down on paper as soon as possible. Getting it down in black and white—wrapping specific words around the ideas—allows them to circulate the thesis internally and to generate reactions early and often.

The perils of the "transformational" deal. Some readers may be wondering whether there isn't a less tangible, but equally credible, rationale for an investment thesis: the transformational deal. Such transactions, which became popular in the exuberant '90s, aim to turn companies (and sometimes even whole industries) on their head and "transform" them. In effect, they change a company's basis of competition through a dramatic redeployment of assets.

The roster of companies that have favored transformational deals includes Vivendi Universal, AOL Time Warner (which changed its name back to Time Warner in October 2003), Enron, Williams, and others. Perhaps that list alone is enough to turn our readers off the concept of the transformational deal. (We admit it: We keep wanting to put that word transformational in quotes.) But let's dig a little deeper.

Sometimes what looks like a successful transformational deal is really a case of mistaken identity. In search of effective transformations, people sometimes cite the examples of DuPont—which after World War I used M&A to transform itself from a maker of explosives into a broad-based leader in the chemicals industry—and General Motors, which, through the consolidation of several car companies, transformed the auto industry. But when you actually dissect the moves of such industry winners, you find that they worked their way down the same learning curve as the best-practice companies in our global study. GM never attempted the transformational deal; instead, it rolled up smaller car companies until it had the scale to take on a Ford—and win. DuPont was similarly patient; it broadened its product scope into a range of chemistry-based industries, acquisition by acquisition.

In a more recent example, Rexam PLC has transformed itself from a broad-based conglomerate into a global leader in packaging by actively managing its portfolio and growing its core business. Beginning in the late '90s, Rexam shed diverse businesses in cyclical industries and grew scale in cans. First it acquired Europe's largest beverage—can manufacturer, Sweden's PLM, in 1999. Then it bought U.S.-based packager American National Can in 2000, making itself the largest beverage-can maker in the world. In other words, Rexam acquired with a clear investment thesis in mind: to grow scale in can making or broaden geographic scope. The collective impact of these many small steps was transformation. 14

But what of the literal transformational deal? You saw the preceding list of companies. Our advice is unequivocal: Stay out of this high-stakes game. Recent efforts to transform companies via the megadeal have failed or faltered. The glamour is blinding, which only makes the route more treacherous and the destination less clear. If you go this route, you are very likely to destroy value for your shareholders.

By definition, the transformational deal can't have a clear investment thesis, and evidence from the movement of stock prices immediately following deal announcements suggests that the market prefers deals that have a clear investment thesis. In "Deals That Create Value," for example, McKinsey scrutinized stock price movements before and after 231 corporate transactions over a five-year period. The study concluded that the market prefers "expansionist" deals, in which a company "seeks to boost its market share by consolidating, by moving into new geographic regions, or by adding new distribution channels for existing products and services."

On average, McKinsey reported, deals of the "expansionist" variety earned a stock market premium in the days following their announcement. By contrast, "transformative" deals—whereby companies threw themselves bodily into a new line of business—destroyed an average of 5.3% of market value immediately after the deal's announcement. Translating these findings into our own terminology:

• Expansionist deals are more likely to have a clear investment thesis, while "transformative" deals often have no credible rationale.
• The market is likely to reward the former and punish the latter.
• The dilution/accretion debate. One more side discussion that comes to bear on the investment thesis: Deal making is often driven by what we'll call the dilution/accretion debate. We will argue that this debate must be taken into account as you develop your investment thesis, but your thesis making should not be driven by this debate.

Sometimes what looks like a successful transformational deal is really a case of mistaken identity. Simply put, a deal is dilutive if it causes the acquiring company to have lower earnings per share (EPS) than it had before the transaction. As they teach in Finance 101, this happens when the asset return on the purchased business is less than the cost of the debt or equity (e.g., through the issuance of new shares) needed to pay for the deal. Dilution can also occur when an asset is sold, because the earnings power of the business being sold is greater than the return on the alternative use of the proceeds (e.g., paying down debt, redeeming shares or buying something else). An accretive deal, of course, has the opposite outcomes.

But that's only the first of two shoes that may drop. The second shoe is, How will Wall Street respond? Will investors punish the company (or reward it) for its dilutive ways?

Aware of this two-shoes-dropping phenomenon, many CEOs and CFOs use the litmus test of earnings accretion/dilution as the first hurdle that should be put in front of every proposed deal. One of these skilled acquirers is Citigroup's [former] CFO Todd Thomson, who told us:

It's an incredibly powerful discipline to put in place a rule of thumb that deals have to be accretive within some [specific] period of time. At Citigroup, my rule of thumb is it has to be accretive within the first twelve months, in terms of EPS, and it has to reach our capital rate of return, which is over 20% return within three to four years. And it has to make sense both financially and strategically, which means it has to have at least as fast a growth rate as we expect from our businesses in general, which is 10 to 15% a year.

Now, not all of our deals meet that hurdle. But if I set that up to begin with, then if [a deal is] not going to meet that hurdle, people know they better make a heck of a compelling argument about why it doesn't have to be accretive in year one, or why it may take year four or five or six to be able to hit that return level.

Unfortunately, dilution is a problem that has to be wrestled with on a regular basis. As Mike Bertasso, the head of H. J. Heinz's Asia-Pacific businesses, told us, "If a business is accretive, it is probably low-growth and cheap for a reason. If it is dilutive, it's probably high-growth and attractive, and we can't afford it." Even if you can't afford them, steering clear of dilutive deals seems sensible enough, on the face of it. Why would a company's leaders ever knowingly take steps that would decrease their EPS?

The answer, of course, is to invest for the future. As part of the research leading up to this book, Bain looked at a hundred deals that involved EPS accretion and dilution. All the deals were large enough and public enough to have had an effect on the buyer's stock price. The result was surprising: First-year accretion and dilution did not matter to shareholders. In other words, there was no statistical correlation between future stock performance and whether the company did an accretive or dilutive deal. If anything, the dilutive deals slightly outperformed. Why? Because dilutive deals are almost always involved in buying higher-growth assets, and therefore by their nature pass Thomson's test of a "heck of a compelling argument."

As a rule, investors like to see their companies investing in growth. We believe that investors in the stock market do, in fact, look past reported EPS numbers in an effort to understand how the investment thesis will improve the business they already own. If the investment thesis holds up to this kind of scrutiny, then some short-term dilution is probably acceptable.

Reprinted with permission of Harvard Business School Press. Mastering the Merger: Four Critical Decisions That Make or Break the Deal , by David Harding and Sam Rovit. Copyright 2004 Bain & Company; All Rights Reserved.

David Harding (HBS MBA '84) is a director in Bain & Company's Boston office and is an expert in corporate strategy and organizational effectiveness.

Sam Rovit (HBS MBA '89) is a director in the Chicago office and leader of Bain & Company's Global Mergers and Acquisitions Practice.                                              

10. Joe Trustey, telephone interview by David Harding, Bain & Company. Boston: 13 May 2003. Subsequent comments by Trustey are also from this interview.

11. Accenture, "Accenture Survey Shows Executives Are Cautiously Optimistic Regarding Future Mergers and Acquisitions," Accenture Press Release, 30 May 2002.

12. John R. Harbison, Albert J. Viscio, and Amy T. Asin, "Making Acquisitions Work: Capturing Value After the Deal," Booz Allen & Hamilton Series of View-points on Alliances, 1999.

13. Craig Tall, telephone interview by Catherine Lemire, Bain & Company. Toronto: 1 October 2002.

14. Rolf Börjesson, interview by Tom Shannon, Bain & Company. London: 2001.

15. Hans Bieshaar, Jeremy Knight, and Alexander van Wassenaer, "Deals That Create Value," McKinsey Quarterly 1 (2001).

16. Todd Thomson, speaking on "Strategic M&A in an Opportunistic Environment." (Presentation at Bain & Company's Getting Back to Offense conference, New York City, 20 June 2002.)

17. Mike Bertasso, correspondence with David Harding, 15 December 2003.

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How to Write an Investment Thesis in Private Equity

Get looped in.

Recent years have posed significant challenges for M&A activity, with private equity deal volume experiencing a stark 46% decline compared to the previous year in 2022. Similarly, venture capital deals globally saw a notable 42% decrease in the first 11 months. Moreover, the mounting dry powder, surpassing $1 trillion USD in the US alone, underscores the urgency for firms to adapt their business strategies to thrive in 2023 and beyond.

Amidst this landscape, transitioning to a direct sourcing model alongside intermediary deals is imperative. However, economic uncertainties compel firms to further refine their outbound strategies to capitalize on opportunities efficiently. Dealmakers face the crucial task of optimizing their time and focusing on strategic investments that align with their objectives. Crafting a compelling investment thesis becomes paramount, guiding direct deal sourcing efforts and enabling firms to differentiate themselves in a competitive market.

Read on to discover how a meticulously crafted investment thesis can drive success in direct deal sourcing strategies.

What Is an Investment Thesis in Private Equity?

An investment thesis is, quite literally, a thesis statement. It's succinct, yet comprehensive enough to serve as your firm's guiding principle to both source and secure ideal investments. 

Imagine you're back in school and writing a term paper. Remember how a thesis was treated as a single defining statement that guided the development of your entire paper? The same is true of an investment thesis for your private equity firm. Unlike your term paper, however, firms often have more than one thesis because they often focus on multiple types of deals at once. 

Dealmakers' theses can also be broken down into two specific types: top-down and bottom-up. A top-down investment thesis is something that helps your team understand and seek out ideal investment targets when sourcing.

Top-Down Investment Thesis for Venture Capital Example:

‍ "This $10MM seed fund focuses on US-based cannabis startups that are furthering the industry through technology and infrastructure research and development that can leverage our partners' vast experience in the logistics and supply chain sectors."

Once your firm has identified an ideal company that fits its top-down thesis, it's time to create a bottom-up version. Far more direct and specific in nature, a bottom-up investment thesis includes everything from particular information about the target company including financial statements and forecasting, future business plans, funding strategy reasoning, industry trends, etc. as well as why your firm is the best choice.

‍ Bottom-Up Investment Thesis for Private Equity Example:

‍ "Smith Partners is seeking to invest a $20MM Series A round in Asclepius, Inc. to aid in their rapid growth and contributions to the advancement of the healthcare industry. Their dedication to modernization combined with SP's vast network of cutting-edge automation manufacturers and forward-thinking healthcare providers make this partnership particularly exciting."

A bottom-up thesis would then continue into specifics about the company, detailing financial and employee records, proprietary knowledge or advantages such as patents, and more about what your firm brings to the transaction. A final bottom-up thesis can take many different forms: e.g., a comprehensive document, presentation, or video.

The key to both a top-down and bottom-up investment thesis is specificity. Every thesis your firm creates should be valid only for your firm . The combination of geographic location, sector or industry, company stage or type, fund size, reasons behind the investment or focus, and your firm's specific differentiators should make each of your theses unique.

Steps for Building an Investment Thesis Framework

Creating an investment thesis framework will help your firm draft theses more quickly and make sure all of the necessary information is included. Answering the following series of questions is a good place to start building a framework for both top-down and bottom-up theses:

• What is the goal of this thesis? This answer takes one of two forms: to find new target investment opportunities or to secure a potential deal. But before you can detail the rest of the thesis, you must know your end goal. ‍
• What are the basic parameters of your ideal deal? Once you have your overall goal, sort out the basics first: overall available capital, company demographics (e.g., location, size, industry), etc. ‍
• What are the influencing internal factors? What is your firm hoping to get from a deal that would fit this thesis? Do you need to bridge a valuation gap in your portfolio, for example? ‍
• What are the influencing external factors? If you've ever gone through a thematic sourcing exercise, this will feel similar. While your thesis should not be nearly as large in scope as a thematic investing strategy, socioeconomic or industry trends can be a driving factor for why your firm is looking at this type of investment and should be called out in your thesis. ‍
• Why your firm? While this is the simplest question, it's not only the most difficult to answer but also the most important. Your differentiator "what only your firm can offer to the industry or target company" and why you are particularly suited to this segment of the market (in a top-down thesis) or specific deal (in a bottom-up thesis) is the key to crafting a successful investment thesis in private equity. ‍
• Why this deal? For a bottom-up thesis, you must detail why this deal should be transacted: - Why this company? Is it the founder that instills confidence? Do they have intellectual property that makes the deal worthwhile? How are their financials impacting this decision? - Why now? - What does the future look like and what are your plans post-transaction? - What is the eventual exit strategy? When would you plan for that to happen? - How does this deal impact your portfolio?

The framework you build from answering these questions can then be refined into a single statement or document that serves as your thesis. But be prepared to make iterations. You must continually refine your theses as you gather more data, learn more about your ideal investment, and the world continues to evolve and change.

Putting Your Investment Thesis to Work

Once your firm establishes a thesis, it's time to leverage it effectively. Remember, a well-crafted thesis serves as a guide for qualifying opportunities and determining their potential value. Integrating your top-down criteria into a robust deal sourcing platform facilitates market mapping, identifies relevant conferences, enables direct sourcing, and offers comprehensive insights into target companies and their competitive landscape.

With over 190,000 sources and millions of data points, Sourcescrub's deal sourcing platform has consistently enhanced research productivity by 42.8% and expanded deal sourcing pipelines by 36%. Let's chat to explore how we can assist you in developing and executing your investment theses in any industry landscape.

Originally posted on “January 10, 2023”

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Equity Research Overview

A complete overview of equity research and what it entails

What is Equity Research?

Equity research professionals are responsible for producing analyses, recommendations, and reports on investment opportunities that investment banks , institutions, or their clients may be interested in. The Equity Research Division is a group of analysts and associates at an investment banking ( sell-side ), an institution ( buy-side ), or an independent organization.

The main purpose of equity research is to provide investors with detailed financial analysis and recommendations on whether to buy, hold, or sell a particular investment. Banks often use equity research as a way of “supporting” their investment banking and sales & trading clients, by providing timely, high-quality information and analysis.

How are Equity Research Divisions Organized?

If you’re looking for a career in equity research,  then it’s important to know that it’s a fairly flat organizational structure (unlike the hierarchy in investment banking) and the two main positions are Associate and Analyst.  Unlike other areas of corporate finance, the Associate position is more junior and the Analyst position is more senior.  Typically, an associate (or multiple associates) work for one Analyst, who has overall responsibility for covering a group of companies.

Analysts are usually divided into industry sectors to cover similar companies within an industry.  Most sectors have a lot of specialized knowledge required, so it makes sense for an analyst to stick to one industry where they can become experts.

Some of the largest sectors in equity research include consumer staples, consumer discretionary, internet, healthcare, energy, mining, technology, and telecommunications.  A team of associates and an analyst will usually cover at least 5 companies and could cover as many as 15, depending on their seniority, the sizes of the companies, and the industry.  More: see our financial analyst guide .

What Do Equity Research Analysts/Associates Do?

The main work in equity research is producing reports.  Ranging from quick updates or “flash reports” to in-depth, “initiating coverage” reports, the job of an equity research associate or analyst is to constantly be publishing. Another big part of the job (discussed below) is financial modeling .

Working in equity research can be compared to what it’s like to be a university student.  There are lots of “assignments” or “papers” due with fairly regular deadlines, such as when a company releases quarterly results or announces something.

The contents of an equity research report typically include:

• Industry research (competitors, trends, etc.)
• Management overview and commentary
• Historical financial results
• Forecasting
• Recommendations

Each of these sections is broken down in more detail below.

Breaking Down an Equity Research Report

Below is an example of the cover of an equity research report from a bank.

1. Industry Research

In this section of an equity research report, there will be lots of information on trends and competition in the industry.  This is where frameworks like Porter’s Five Forces or a PEST analysis can come in handy to ensure that you’ve covered all the dynamics in the industry, including politics, economics, social trends, and technological innovation, to name a few.

2. Management Overview

It’s very important for anyone considering a potential investment in a company to understand the quality of its management team. This is a place where equity research analysts can add real value, since they have direct access to management on quarterly conference calls, “analyst day”, site visits, and other occasions.  Unlike individual investors, they can ask management direct questions about the business, and then do an assessment of their competence and relay that information back to investors.

3. Historical Financial Results

One of the core jobs of equity research is to analyze historical financial results and compare them to the guidance that was given, or compare them to the analyst’s expectations.  The performance of a stock is largely based on reality vs expectations, so it’s important for an analyst to analyze and understand if the actual historical results were below, at, or above market expectations.

To learn these equity research skills, see our financial analysis courses .

4. Forecasting

Forecasting financial results is more of an art than a science.  We’ve written about this extensively in our guides on how to be a good financial analyst , as well as providing a breakdown of financial modeling skills .

To summarize the points in those articles, there are two main ways of forecasting: top-down and bottom-up.

Top-down forecasting looks at the industry-first (its size, growth, pricing, etc.), then determines how much market share a company is likely to have, and finally, works down to revenue.

A bottom-up approach starts with the basic drivers of revenue, such as the number of customers, or the number of units sold, and then works up to a revenue forecast.  Professionals in equity research have to forecast quarterly data (or whatever frequency the company reports, e.g., semi-annually in Europe).

For more on this, see our complete financial modeling guide .

5. Valuation

The only thing that’s more of an art than forecasting is valuation.  Valuation methods take all the assumptions from the forecast and build on them with even more assumptions, such as a valuation multiple and/or a discount rate, both of which are very subjective.  Analysts in equity research have to be good at financial modeling and may build a 3 statement model  as well as DCF models or others as required.

Financial modeling takes practice, and we recommend browsing our specialized offering of professional financial modeling courses to become an expert.

6. Recommendations

In the recommendations section, the equity research analyst will have a target price (or price target) which tells investors where they expect the stock to be (typically) a year’s time.  In addition to this, they will often make an actual recommendation to investors about what they should do.  The language varies from bank to bank, but examples include:

• Buy / Overweight / Long
• Hold / Market weight / Neutral
• Sell / Underweight / Short

How to Get Into Equity Research

If you’re looking for a career in equity research, then you’ve come to the right place. You’ll have to be good at financial modeling, valuation, and data visualization (charts and graphs for reports), and we’ve got all the courses you need to excel in all these areas.

Our top recommendations for equity research training include the following resources:

• Financial modeling courses
• Valuation course
• Excel training
• Guide to being a good analyst
• See all career resources
• See all capital markets resources
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Guiding Questions to Advance Equity in Evaluation and Research

A process for developing inclusive, culturally relevant and rigorous methods.

Advancing Equity in Evaluation and Research

This resource provides context about the Annie E. Casey Foundation’s approach to ensuring equity in its evaluation and research efforts, insights into how the Foundation incorporated these practices into its work and ideas for how others can use this approach.

The guiding questions to advance equity in evaluation are organized in phases to cover all aspects of a study:

• cross-cutting;
• teaming; 
• study plan;
• methods and data collection; 
• analysis; and 
• share and use. 

The questions were developed in a multiyear process that included consultation with the Equitable Evaluation Initiative , staff retreats, a retrospective look at where Casey was already advancing equity in evaluation and research, meetings to edit document drafts, pilot projects to test the questions and efforts to familiarize new staff with how to use them.

The main report provides detailed information about key actions for incorporating equity into studies and what foundations should know. These actions include:

• setting aside time and space for the process;
• reviewing and building on how the team already uses practices to incorporate equity; and
• carrying out pilot projects to test ideas. 

The main report also shares additional resources for learning more, suggestions for preparing to use the guiding questions and examples of how to use them. For some funders, answering the entire set of questions may be helpful. For many, perusing the questions may be more useful, enabling funders to test the approach and see how it might fit into their work.

The online resource includes the main report and a landing page for the questions. Through the landing page, users can access the guiding questions as freestanding PDFs, which are interactive fillable forms. This enables users to navigate the document and the guiding questions through links in any order or number they find useful.

Guiding Questions Documents

• Cross-Cutting Guiding Questions
• Teaming Guiding Questions
• Study Plan Guiding Questions
• Methods and Data Collection Guiding Questions
• Analysis Guiding Questions
• Share and Use Guiding Questions

Findings & Stats

Identify and engage those most affected.

The questions in this guide align with Step 6 of the Foundation’s Race Equity and Inclusion Action Guide ’s steps to equity. This step provides a structured process for considering who is (or is likely to be) most affected by a project, a practice or a policy; ensuring they are fully engaged in the identification of possible challenges and possibilities; and engaging them in informing any needed changes.

Seek Solutions That Reflect Collective Wisdom

Both the guiding questions in this document and the seven steps to advancing equity described in Casey’s 2015 Race Equity and Inclusion Guide stress the importance of being aware of racial and cultural contexts and seeking solutions that reflect collective wisdom. Developing those solutions starts with promoting understanding among all people involved, emphasizing trust and open communication and involving those most affected in gathering and analyzing data to find the root causes of inequality and identify the best solutions.

Focus on Values and Principles Early

Having a vision based on values helped get the Casey team excited before it dove into the details of the work — and equipped individual team members to make the case to colleagues and partners. For example, the Casey team identified human dignity, equity, belonging, taking risks and transparency as shared values.

Statements & Quotations

At Casey, the guiding questions helped the team apply the principles of advancing equity to the Foundation’s daily decisions about the studies it commissions and oversees. Every user’s experience will be different. Feel free to adjust, add or delete questions to make this resource relevant to your needs.

Acknowledging that there's no single way to incorporate equity principles into a study, the questions encourage consideration of the project's specific context and feasible approaches. Users should not expect to go through these questions in a set order or feel the need to check off every item. The questions provide prompts to help the user identify who should be included in answering the questions and how to structure the work.

Use Guiding Questions to Achieve Actionable Steps

To ensure equity in its evaluation and research, Casey’s Research and Evaluation team developed a set of flexible, adaptable guiding questions to foster a common approach for conducting equity-centered research and evaluation with partners. These questions helped Casey staff turn the Foundation’s commitment to equity in evaluation and research into actionable steps to negotiate what can feel like a large, overwhelming process.

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Research Topics & Ideas: Finance

120+ Finance Research Topic Ideas To Fast-Track Your Project

If you’re just starting out exploring potential research topics for your finance-related dissertation, thesis or research project, you’ve come to the right place. In this post, we’ll help kickstart your research topic ideation process by providing a hearty list of finance-centric research topics and ideas.

PS – This is just the start…

We know it’s exciting to run through a list of research topics, but please keep in mind that this list is just a starting point . To develop a suitable education-related research topic, you’ll need to identify a clear and convincing research gap , and a viable plan of action to fill that gap.

If this sounds foreign to you, check out our free research topic webinar that explores how to find and refine a high-quality research topic, from scratch. Alternatively, if you’d like hands-on help, consider our 1-on-1 coaching service .

Overview: Finance Research Topics

• Corporate finance topics
• Investment banking topics
• Private equity & VC
• Asset management
• Hedge funds
• Financial planning & advisory
• Quantitative finance
• Treasury management
• Financial technology (FinTech)
• Commercial banking
• International finance

Corporate Finance

These research topic ideas explore a breadth of issues ranging from the examination of capital structure to the exploration of financial strategies in mergers and acquisitions.

• Evaluating the impact of capital structure on firm performance across different industries
• Assessing the effectiveness of financial management practices in emerging markets
• A comparative analysis of the cost of capital and financial structure in multinational corporations across different regulatory environments
• Examining how integrating sustainability and CSR initiatives affect a corporation’s financial performance and brand reputation
• Analysing how rigorous financial analysis informs strategic decisions and contributes to corporate growth
• Examining the relationship between corporate governance structures and financial performance
• A comparative analysis of financing strategies among mergers and acquisitions
• Evaluating the importance of financial transparency and its impact on investor relations and trust
• Investigating the role of financial flexibility in strategic investment decisions during economic downturns
• Investigating how different dividend policies affect shareholder value and the firm’s financial performance

Investment Banking

The list below presents a series of research topics exploring the multifaceted dimensions of investment banking, with a particular focus on its evolution following the 2008 financial crisis.

• Analysing the evolution and impact of regulatory frameworks in investment banking post-2008 financial crisis
• Investigating the challenges and opportunities associated with cross-border M&As facilitated by investment banks.
• Evaluating the role of investment banks in facilitating mergers and acquisitions in emerging markets
• Analysing the transformation brought about by digital technologies in the delivery of investment banking services and its effects on efficiency and client satisfaction.
• Evaluating the role of investment banks in promoting sustainable finance and the integration of Environmental, Social, and Governance (ESG) criteria in investment decisions.
• Assessing the impact of technology on the efficiency and effectiveness of investment banking services
• Examining the effectiveness of investment banks in pricing and marketing IPOs, and the subsequent performance of these IPOs in the stock market.
• A comparative analysis of different risk management strategies employed by investment banks
• Examining the relationship between investment banking fees and corporate performance
• A comparative analysis of competitive strategies employed by leading investment banks and their impact on market share and profitability

Private Equity & Venture Capital (VC)

These research topic ideas are centred on venture capital and private equity investments, with a focus on their impact on technological startups, emerging technologies, and broader economic ecosystems.

• Investigating the determinants of successful venture capital investments in tech startups
• Analysing the trends and outcomes of venture capital funding in emerging technologies such as artificial intelligence, blockchain, or clean energy
• Assessing the performance and return on investment of different exit strategies employed by venture capital firms
• Assessing the impact of private equity investments on the financial performance of SMEs
• Analysing the role of venture capital in fostering innovation and entrepreneurship
• Evaluating the exit strategies of private equity firms: A comparative analysis
• Exploring the ethical considerations in private equity and venture capital financing
• Investigating how private equity ownership influences operational efficiency and overall business performance
• Evaluating the effectiveness of corporate governance structures in companies backed by private equity investments
• Examining how the regulatory environment in different regions affects the operations, investments and performance of private equity and venture capital firms

Asset Management

This list includes a range of research topic ideas focused on asset management, probing into the effectiveness of various strategies, the integration of technology, and the alignment with ethical principles among other key dimensions.

• Analysing the effectiveness of different asset allocation strategies in diverse economic environments
• Analysing the methodologies and effectiveness of performance attribution in asset management firms
• Assessing the impact of environmental, social, and governance (ESG) criteria on fund performance
• Examining the role of robo-advisors in modern asset management
• Evaluating how advancements in technology are reshaping portfolio management strategies within asset management firms
• Evaluating the performance persistence of mutual funds and hedge funds
• Investigating the long-term performance of portfolios managed with ethical or socially responsible investing principles
• Investigating the behavioural biases in individual and institutional investment decisions
• Examining the asset allocation strategies employed by pension funds and their impact on long-term fund performance
• Assessing the operational efficiency of asset management firms and its correlation with fund performance

Hedge Funds

Here we explore research topics related to hedge fund operations and strategies, including their implications on corporate governance, financial market stability, and regulatory compliance among other critical facets.

• Assessing the impact of hedge fund activism on corporate governance and financial performance
• Analysing the effectiveness and implications of market-neutral strategies employed by hedge funds
• Investigating how different fee structures impact the performance and investor attraction to hedge funds
• Evaluating the contribution of hedge funds to financial market liquidity and the implications for market stability
• Analysing the risk-return profile of hedge fund strategies during financial crises
• Evaluating the influence of regulatory changes on hedge fund operations and performance
• Examining the level of transparency and disclosure practices in the hedge fund industry and its impact on investor trust and regulatory compliance
• Assessing the contribution of hedge funds to systemic risk in financial markets, and the effectiveness of regulatory measures in mitigating such risks
• Examining the role of hedge funds in financial market stability
• Investigating the determinants of hedge fund success: A comparative analysis

Financial Planning and Advisory

This list explores various research topic ideas related to financial planning, focusing on the effects of financial literacy, the adoption of digital tools, taxation policies, and the role of financial advisors.

• Evaluating the impact of financial literacy on individual financial planning effectiveness
• Analysing how different taxation policies influence financial planning strategies among individuals and businesses
• Evaluating the effectiveness and user adoption of digital tools in modern financial planning practices
• Investigating the adequacy of long-term financial planning strategies in ensuring retirement security
• Assessing the role of financial education in shaping financial planning behaviour among different demographic groups
• Examining the impact of psychological biases on financial planning and decision-making, and strategies to mitigate these biases
• Assessing the behavioural factors influencing financial planning decisions
• Examining the role of financial advisors in managing retirement savings
• A comparative analysis of traditional versus robo-advisory in financial planning
• Investigating the ethics of financial advisory practices

The following list delves into research topics within the insurance sector, touching on the technological transformations, regulatory shifts, and evolving consumer behaviours among other pivotal aspects.

• Analysing the impact of technology adoption on insurance pricing and risk management
• Analysing the influence of Insurtech innovations on the competitive dynamics and consumer choices in insurance markets
• Investigating the factors affecting consumer behaviour in insurance product selection and the role of digital channels in influencing decisions
• Assessing the effect of regulatory changes on insurance product offerings
• Examining the determinants of insurance penetration in emerging markets
• Evaluating the operational efficiency of claims management processes in insurance companies and its impact on customer satisfaction
• Examining the evolution and effectiveness of risk assessment models used in insurance underwriting and their impact on pricing and coverage
• Evaluating the role of insurance in financial stability and economic development
• Investigating the impact of climate change on insurance models and products
• Exploring the challenges and opportunities in underwriting cyber insurance in the face of evolving cyber threats and regulations

Quantitative Finance

These topic ideas span the development of asset pricing models, evaluation of machine learning algorithms, and the exploration of ethical implications among other pivotal areas.

• Developing and testing new quantitative models for asset pricing
• Analysing the effectiveness and limitations of machine learning algorithms in predicting financial market movements
• Assessing the effectiveness of various risk management techniques in quantitative finance
• Evaluating the advancements in portfolio optimisation techniques and their impact on risk-adjusted returns
• Evaluating the impact of high-frequency trading on market efficiency and stability
• Investigating the influence of algorithmic trading strategies on market efficiency and liquidity
• Examining the risk parity approach in asset allocation and its effectiveness in different market conditions
• Examining the application of machine learning and artificial intelligence in quantitative financial analysis
• Investigating the ethical implications of quantitative financial innovations
• Assessing the profitability and market impact of statistical arbitrage strategies considering different market microstructures

Treasury Management

The following topic ideas explore treasury management, focusing on modernisation through technological advancements, the impact on firm liquidity, and the intertwined relationship with corporate governance among other crucial areas.

• Analysing the impact of treasury management practices on firm liquidity and profitability
• Analysing the role of automation in enhancing operational efficiency and strategic decision-making in treasury management
• Evaluating the effectiveness of various cash management strategies in multinational corporations
• Investigating the potential of blockchain technology in streamlining treasury operations and enhancing transparency
• Examining the role of treasury management in mitigating financial risks
• Evaluating the accuracy and effectiveness of various cash flow forecasting techniques employed in treasury management
• Assessing the impact of technological advancements on treasury management operations
• Examining the effectiveness of different foreign exchange risk management strategies employed by treasury managers in multinational corporations
• Assessing the impact of regulatory compliance requirements on the operational and strategic aspects of treasury management
• Investigating the relationship between treasury management and corporate governance

Financial Technology (FinTech)

The following research topic ideas explore the transformative potential of blockchain, the rise of open banking, and the burgeoning landscape of peer-to-peer lending among other focal areas.

• Evaluating the impact of blockchain technology on financial services
• Investigating the implications of open banking on consumer data privacy and financial services competition
• Assessing the role of FinTech in financial inclusion in emerging markets
• Analysing the role of peer-to-peer lending platforms in promoting financial inclusion and their impact on traditional banking systems
• Examining the cybersecurity challenges faced by FinTech firms and the regulatory measures to ensure data protection and financial stability
• Examining the regulatory challenges and opportunities in the FinTech ecosystem
• Assessing the impact of artificial intelligence on the delivery of financial services, customer experience, and operational efficiency within FinTech firms
• Analysing the adoption and impact of cryptocurrencies on traditional financial systems
• Investigating the determinants of success for FinTech startups

Commercial Banking

These topic ideas span commercial banking, encompassing digital transformation, support for small and medium-sized enterprises (SMEs), and the evolving regulatory and competitive landscape among other key themes.

• Assessing the impact of digital transformation on commercial banking services and competitiveness
• Analysing the impact of digital transformation on customer experience and operational efficiency in commercial banking
• Evaluating the role of commercial banks in supporting small and medium-sized enterprises (SMEs)
• Investigating the effectiveness of credit risk management practices and their impact on bank profitability and financial stability
• Examining the relationship between commercial banking practices and financial stability
• Evaluating the implications of open banking frameworks on the competitive landscape and service innovation in commercial banking
• Assessing how regulatory changes affect lending practices and risk appetite of commercial banks
• Examining how commercial banks are adapting their strategies in response to competition from FinTech firms and changing consumer preferences
• Analysing the impact of regulatory compliance on commercial banking operations
• Investigating the determinants of customer satisfaction and loyalty in commercial banking

International Finance

The folowing research topic ideas are centred around international finance and global economic dynamics, delving into aspects like exchange rate fluctuations, international financial regulations, and the role of international financial institutions among other pivotal areas.

• Analysing the determinants of exchange rate fluctuations and their impact on international trade
• Analysing the influence of global trade agreements on international financial flows and foreign direct investments
• Evaluating the effectiveness of international portfolio diversification strategies in mitigating risks and enhancing returns
• Evaluating the role of international financial institutions in global financial stability
• Investigating the role and implications of offshore financial centres on international financial stability and regulatory harmonisation
• Examining the impact of global financial crises on emerging market economies
• Examining the challenges and regulatory frameworks associated with cross-border banking operations
• Assessing the effectiveness of international financial regulations
• Investigating the challenges and opportunities of cross-border mergers and acquisitions

Choosing A Research Topic

These finance-related research topic ideas are starting points to guide your thinking. They are intentionally very broad and open-ended. By engaging with the currently literature in your field of interest, you’ll be able to narrow down your focus to a specific research gap .

When choosing a topic , you’ll need to take into account its originality, relevance, feasibility, and the resources you have at your disposal. Make sure to align your interest and expertise in the subject with your university program’s specific requirements. Always consult your academic advisor to ensure that your chosen topic not only meets the academic criteria but also provides a valuable contribution to the field. 

If you need a helping hand, feel free to check out our private coaching service here.

thank you for suggest those topic, I want to ask you about the subjects related to the fintech, can i measure it and how?

Please guide me on selecting research titles

I am doing financial engineering. , can you please help me choose a dissertation topic?

I’m studying Banking and finance (MBA) please guide me on to choose a good research topic.

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Master Thesis Ideas Equity Research

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I'm about to get started with writing my Masterthesis. So far my Professors haven't been very helpful with finding a topic.

After graduation I would like to start working in Equity Research . So I would preffer to do a Thesis in that field. The best would be if I could combine it with Computational Finance (C++ or VBA ) somehow.

Any Ideas what a good topic could be? My University is a Research University and they seem to dislike practical stuff. So I can't make a valuation itself as a thesis.

Theory of IPO underpricing by Rock (1986), you could focus on HK , data needed such as IPO allotment results and prospectus' are only available for Singapore and HK listed companies, so you could test the validity of that theory on these stock exchanges.

CityRainMaker: Theory of IPO underpricing by Rock (1986), you could focus on HK , data needed such as IPO allotment results and prospectus' are only available for Singapore and HK listed companies, so you could test the validity of that theory on these stock exchanges.

You're going to get the same result because the same banks underwrite IPOs in Asia as they do in US and Europe.

Interesting thesis topics to explore for e. val. : economic benefit of short term valuation v. long term valuation (i.e. most analysts want to predict eps for next quarter, but valuation should be long-term), Pure Plays in relative valuation (what peer group of companies should be included in a peer group? Firms in the same business? Firms with similar operating margins and risk structures?), one that interests me particularly is the economic benefits of an LBO (why should target firms accept them, instead of leveraging up and issuing a special dividend ?)...

Hope that helps.

thx a lot so far.

I like the LBO and the long vs. short term ideas. But how should I collect data for the long run estimates if all or most estimates are for a short term?

chris11: thx a lot so far. I like the LBO and the long vs. short term ideas. But how should I collect data for the long run estimates if all or most estimates are for a short term?

Compare buy-side research to sell-side research for the same companies...that should give you a good picture of long term v short term...you'd obviously have to call buyside firms, as I'm sure they dont release most of their information. More concretely, pick a specific sector and a corresponding group of companies and get buy- and sell- side research for each company.

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Dissertation, Doctoral Project, and Thesis Information & Templates

Note: Forms required for the submission of theses and dissertations are available on the  Academic Forms  page.

Important Notes for Dissertation, Doctoral Project & Thesis Writers

• Information is available in Section IV.B.2 Research on Human Subjects of the  Graduate Bulletin   (from the  Resources and Policies page ).
• Additional information and forms are available on the   IRB website . Your IRB approval number must be included on the Thesis or Dissertation Proposal Form.
• Consult the  Guidelines for Dissertation, Doctoral Project and Thesis Writers  before beginning your thesis or dissertation.
• Download a template to assist with formatting your work. The templates are unlocked and can be edited (links to the template can be found in the “Submission Procedures” sections below).
• Check the Resources & Guidelines section of the ProQuest website for instructions on using the site. The Library has created a very informative series of  short videos  about the choices you must make on the ProQuest site.
• Additional information on copyright, publishing options and other topics is available on  Lauinger’s Scholarly Communication  website.
• More information about the requirements for dissertations, doctoral projects and theses can be found in the  Graduate Bulletin .

Submission of the Thesis, Doctoral Project or Dissertation

Information on the forms required leading up to a defense and also afterward appear on Submission of Thesis  and  Submission of Dissertation or Doctoral Project .

Download a Thesis / Doctoral Project / Dissertation Template

(for Master’s and Doctoral candidates) We recommend that you download a Thesis / Doctoral Project / Dissertation Template using Mozilla Firefox, Safari, or Google Chrome browsers. There are some reported issues for students trying to download using Internet Explorer. The download links are shown below:

• The combined  Master’s Thesis / Doctoral Project / Doctoral Dissertation Template  for MS-Word for Windows is available at: Thesis/Project/Dissertation Template-PC
• The  Master’s   Thesis Template  for Word for Mac is available at:  Thesis Template-MAC
• The  Doctoral Template  for Word for Mac is available at  Dissertation Template-MAC
• If you use the LaTeX markup language, you can download a ZIP file folder containing several template and style documents, as well as an extensive tutorial manual, at this link:  Thesis/Dissertation Template-LaTeX . An updated .sty file was uploaded in June 2020.

LaTeX users please note: These LaTeX template materials are provided for the use of those who are already proficient in the use of LaTeX. Neither the Graduate School nor the faculty who helped develop this template are able to provide support or training in the use of this specialty software.

The Graduate College at the University of Illinois at Urbana-Champaign

Graduate research assistantship (ph.d.) - invasive carp, organization, description, responsibilities, and qualifications.

A Ph.D. Graduate Student Assistantship is available at the University of Illinois to evaluate invasive carp movement and aggregating behavior in the Upper Mississippi River using a combination of GPS and acoustic tags to help guide invasive carp management.  For effective invasive carp management, there is a need to maximize efficient removal of invasive fish from management zones and therefore, being able to locate and predict aggregations is extremely valuable, especially in low-density invasive carp zones. 

This position will work closely with a network of state and federal agencies from Illinois to Minnesota to better understand invasive carp habitat use and aggregation in low/medium-density populations.  The Upper Mississippi River, upstream of Lock and Dam 19, is considered a low-medium density population due to the passage being completely restricted to the lock chamber at LD19, but populations are sufficiently large to reproduce with reproduction documented as far upstream as Pool 16. Most information on invasive carp habitat use in the Upper Mississippi River has come from contracted removal efforts, and passive and manual tracking acoustic telemetry, which are powerful tools but have spatial and temporal limitations to understand fine-scale conditions that drive invasive carp movement and fine-scale habitat use. 

This research will rely on cutting-edge, GPS-enabled tags to better understand the movement and aggregation behavior of invasive carp.  GPS-monitored fish will also be tagged with acoustic tags to leverage the extensive Innovasea passive receiver network on the Upper Mississippi and to evaluate tag retention, tag mortality, battery life, and detection overlap.  Location information will be used to directly inform and mobilize harvest crews, to help feed ongoing predictive harvest models, and to visually locate aggregations using aerial verification techniques.  There may also be opportunities for fine-scale habitat exploration using side-scan sonar mosaics and LIDAR to further refine drivers and habitat resolution. 

This will be a multi-year approach to understanding invasive carp movement and aggregation to aid management and would rely on intensive river fieldwork and GPS-enabled and acoustic tag monitoring in the spring and fall, coordination with contracted fishermen and UMR subbasin invasive carp state and federal partners, and IRBS biologists.  This position will also help lead invasive carp monitoring and tagging crews in the field and this position will require a balance of field, lab, coursework, and office responsibilities.   

This position will complete coursework through the University of Illinois Urbana-Champaign NRES (Natural Resources and Environmental Science) program and work closely with scientists at the Illinois River Biological Station in Havana, Illinois.  The Illinois River Biological Station ( https://illinois-river-bio-station.inhs.illinois.edu/ ) is a collaborative and cohesive unit, and it is imperative that the student is able and willing to work well with others and be versatile.

Qualifications

• M.S. in fisheries biology, biology, or related field required.
• Must have a valid driver’s license.
• Must be able to swim.
• Must have strong computer, computational, and analytical skills, and have the ability to work independently and in a group.
• Must have a competitive GPA.
• Experience operating small watercraft on riverine systems is preferred. Proficiency using GPS and GIS technology is preferred.
• The selected applicant will be required to work long hours in adverse weather conditions.
• Applicants with a strong background in fisheries and aquatic ecology research, telemetry, statistical modeling using R and GIS software, individual-based modeling, and stock assessment are preferred.  

Compensation

This position includes a 50% research assistantship with a tuition waiver through the Department of Natural Resources and Environmental Science (NRES) beginning in Spring 2024. The current monthly stipend for this assistantship is $2,768.00 plus a tuition waiver.  

Application Procedure

This position is contingent on the selected applicant’s ability to apply and be accepted into the Department of Natural Resources and Environmental Science (NRES).

Start date: January 2025 (Spring semester)

To Apply: For full consideration, applications should be submitted no later than September 1, 2024 . To be considered for this position, please email 1) a cover letter that explains your interest and qualifications, 2) a transcript (unofficial is acceptable), 3) C.V. (including 3 references) to Dr. Jim Lamer @ [email protected] (reference “Graduate Application” in the subject line).  Any application that does not include all 3 of these required documents will not be reviewed.

For questions, please contact Dr. James Lamer, Illinois Natural History Survey, by email at [email protected] or by phone at 309-543-6000.

Application Deadline

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Opening doors: tess williams' inspiring journey championing trans equity at sfu.

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by Sofia Ortega

Tess Williams, a systems consultant at Simon Fraser University’s Faculty of Arts and Social Sciences (FASS), is making a lasting impact through her tireless efforts championing institutional change and advocating for trans rights at SFU. Her commitment to fostering equity, diversity, and inclusion (EDI) has inspired positive changes across the university.

As part of her volunteer work as an Administrative and Professional Association (APSA) board member, Williams was crucial in advocating for gender-affirming care to be included in the extended healthcare benefits for SFU employees. Her actions have had a strong impact—starting this summer, SFU will offer gender-affirming care for all faculty and staff.

Together with health sciences assistant professor Travis Salway, Williams also co-developed and delivered the first Trans Equity Survey aimed to identify the most pressing priorities for change at SFU. The survey results clearly broke down areas to address gender-diverse inequity across the university, and resulted in the creation of a network of over 100 people consisting of faculty, students, staff, alumni and allies, all with a commitment to push for structural change.   

Williams is also part of SFU’s EDI Community of Practice (EDI-COPr), a group of staff and faculty leads who are engaged in equity and inclusion work as part of their job description or are involved in unit-level EDI-related initiatives. Thanks to Williams and other community members, the EDI-COPr will establish a Trans Equity Pod as a focus area.

“I would like to recognize how so much of this EDI work happens at the side of people's desks and it is important to honour the personal cost for Tess in terms of the time and labour she has put into this work,” says Paola Ardiles Gamboa, Senior Advisor to the VP, People, Equity & Inclusion. “We are very pleased to be able to support the pod moving forward as part of the work of the Community of Practice.” 

Before joining SFU, Williams worked in the private sector for several years. Reflecting on that experience, she shared, "I didn't feel comfortable coming out. I was living a double life." Her story highlights the struggles that many in the transgender community still face in the workplace.

“Grueling, debilitating. I don't have enough adjectives to describe what an awful experience it is to live that double life,” says Williams. “You start these changes. It's called transition for a reason, it's not a light switch, and many companies are still ignorant, or back then they didn't have processes to support trans folks.”

Williams joined SFU in the summer of 2021.

“I recall that Tess really stood out as unique among the other candidates,” says FASS Information Systems Director and Williams’ former supervisor Jasper Stoodley. “While her skills and experience on paper were similar to others, she expressed such a keen desire to work at SFU and did not consider it just another job.”

Williams says, “From day one, I was extremely motivated. I knew how hard it was for trans folks to get jobs because of my experience, and I would not mess this opportunity up so I worked as hard as I've ever worked in my life in order to retain this job.”

Today, Williams’ hard work is recognized by all those who have had the chance to work with and around her. Described by colleagues as “personable”, “incredibly knowledgeable”, “determined” and “extremely helpful”, her impact extends far beyond her IT role. 

Reflecting on the last three years, Williams describes her time at SFU as “transformational”. 

“Being able to work in a job where I am myself 24/7 was the beginning for me. It allowed me to feel confident. It allowed me to evolve. It has been everything to me,” says Williams. “It has set me on a path and put me in touch with people who I consider my heroes. It has changed my life completely.”

Psychology Student Camille Chandler Named Beinecke Scholar

The third carnegie mellon student to receive the beinecke scholarship, chandler plans to pursue graduate studies in the social sciences.

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Camille Chandler is a researcher, a leader and a dancer. She is an advocate for Black success and a champion for mental health. And as a 2024 Beinecke Scholar, she is a force to be reckoned with at Carnegie Mellon University and in the greater academic sphere. 

Established in 1971, the  Beinecke Scholarship Program (opens in new window) was founded to inspire and enable driven, hardworking students to pursue graduate education in the arts, humanities and social sciences. CMU nominated Chandler, a junior in the Dietrich College of Humanities and Social Sciences (opens in new window) , for this opportunity, and she was selected as one of 20 Beinecke Scholars nationwide.

“The Beinecke Scholarship is really competitive,” said  Paige Zalman (opens in new window) , associate director of the  Office of Undergraduate Research and Scholar Development (opens in new window) . “(Receiving this award) highlights Camille’s extraordinary research accomplishments as well as her future potential as a leading scholar — but it also highlights the incredible work of the Psychology Department here at Carnegie Mellon in terms of preparing students for meaningful careers in research.”

Studying Psychology at Carnegie Mellon

Growing up in Howell, Michigan, Chandler was acutely aware of the lack of diversity surrounding her and the impact that could have on a student and their success. 

“In a way (my experiences) led me to CMU. I think that because of where I grew up, people didn’t really expect that Black people could achieve very much, and so I worked really hard to get to a really good university, which is part of what led me to CMU. Being able to prove to people that I could go somewhere like CMU was a part of getting me here.”

At CMU, Chandler started to realize how she could leverage her experiences to make a difference.

Chandler’s introduction to psychology began with taking an AP psychology course in high school. Fascinated by the study of why people behave in certain ways, Chandler came to CMU thinking that she wanted to become a mental health professional. Her path took a different turn after taking two courses — the first being Grand Challenge First-Year Seminar: We're Not Beyond Race: Race and Identity in America, taught by  Kody Manke-Miller (opens in new window) , associate teaching professor of psychology and Dietrich College’s director of research on diversity, equity and inclusion, and  Kevin Jarbo (opens in new window) , assistant professor of social and decision sciences. The second course was Introduction to Social Psychology taught by Manke-Miller and  Michael Trujillo (opens in new window) , assistant professor of psychology.

Exploring Research in Social Risk-taking

The early psychology courses helped Chandler focus her research interests, coalescing at the intersection of individuals and their social environments. Her research aims to understand how these factors impact behaviors and perceptions in a social setting. She aspires to help develop beneficial interventions to center Black success.

Chandler’s research to date has focused on preferences for standards of fairness in resource allocation and how people make sense of conflicting feedback. In her studies, she and a cohort of two other students investigated the impact of social rejection on social risk-taking. The project explored the experiences of in-groups and out-groups to examine social rejection and how it impacts a person’s social risk-taking behaviors. Her investigation was a joint project in the  Data-Driven Diversity (D3) Lab (opens in new window) and the  Stigma, Health, Equity, and Resilience (SHARE) Lab (opens in new window) . Her project was accepted as a poster presentation at the Society for Personality and Social Psychology Conference. 

Securing the Beinecke Scholarship

Chandler began preparing her Beinecke application package in January with support and advising from Zalman’s office. After a  competitive campus nomination process, (opens in new window) a committee made up of staff from the Office of Undergraduate Research and Scholar Development and faculty who teach in the arts, humanities and social sciences selected Chandler as CMU’s Beinecke nominee. 

“What Camille brings to the table is a very strong and impressive research background that highlights how well-positioned she is to not only be successful in graduate school but also to be a leader in her field of social psychology,” said Zalman.

Chandler received the news of her selection as a Beinecke Scholar through an email, and at first, it didn’t register. Once it did, she was thrilled and surprised.      

“Winning this feels like a testament to my academic self-efficacy that I’ve been working on for a while,” Chandler said.

Chandler is now beginning to work on her  senior honors thesis (opens in new window) project with Trujillo. This thesis will expand on her past studies, exploring the impact of skin tone on in-group role model effectiveness in the academic achievement of Black students.

“We’re so excited to see what she does next because it is very clear that she will have an important impact not just on Carnegie Mellon but on the future of her field and on her future students,” said Zalman.

Chandler made it clear that her support network has been essential in her academic journey and her path to earning this scholarship. 

“I’m really lucky. I have a pretty good network of support at CMU that really helped me to apply for this. During the application process, Paige was so helpful — I sent her so many emails asking for feedback on everything that I was doing,” said Chandler. 

As a Beinecke Scholar, Chandler will receive $5,000 just prior to starting graduate school, along with an additional $30,000 while enrolled and attending her graduate program of choice. She is still considering where to pursue her graduate studies.

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Charter Communications Q2 2024 Earnings: The Bull Thesis Remains Unchanged

• The surge in stock price was due to lower-than-expected broadband net losses of 149,000. The impact of ACP disconnects will continue to 3Q24 and 4Q24.
• Our thesis remains unchanged, as we believe Charter will report broadband net adds thanks to peaking FWA growth and upgrades on its existing network.
• We believe Charter will remain committed to repurchasing shares and staying within its leverage target, given that it has been paying down debt in 2Q24.
• Our Charter's estimated fair value stands at $482 per share (26% upside potential). This implies an 8x forward EV/EBITDA, which is still lower than the 5-year average.
• Investment risks include higher-than-expected broadband net losses and sustained FWA growth.

In our last article titled "Charter Q4'23 Earnings: Net Broadband Losses, Robust Mobile Net Adds, 8% FCF Yield," we highlighted that internet broadband net adds had been under pressure due to low market activity and heightened competition from Fixed Wireless Access ("FWA") operators and fiber overbuilders. However, one of the FWA operators suggested that net adds below its quarterly trend were still sufficient to reach its 2025 target. Moreover, fiber overbuilders revised their fiber deployment targets given lower-than-expected returns. On the other hand, we estimated Charter ( NASDAQ: CHTR ) had retained most of its mobile subscribers following the promotional roll-off late last year. Lastly, we believe the stock selloff was overdone.

Since we reiterated our BUY rating, the stock price has increased by 33%, far outperforming the S&P 500 which advanced by 9%. The sudden jump was primarily because of lower-than-anticipated internet broadband net losses in 2Q24: 149,000 net loss (actual) vs. 306,000 net loss ( consensus ). The 2Q24 results also led analysts to revise their earnings forecast upward.

In this article, we will discuss about the 2Q24 earnings results and how our thesis remains unchanged.

2Q24 Earnings Results

Please find the summary of the 2Q24 earnings results below:

2Q24 Earnings Results (Company, Vektor Research)

In 2Q24, revenue was roughly flat sequentially and on a year-on-year basis, including a $30 million one-time headwind from the Affordable Connectivity Program ("ACP")-related items.

Revenue from internet broadband was flat sequentially but increased by 1% (Y/Y). Charter reported 149,000 broadband net losses during the quarter, higher than the net losses in 1Q24 at 72,000. According to management, of these 100,000 impacted by non-pay ACP disconnects, about 50,000 came from voluntary churn, while the remaining ones were due to reduced gross additions. Additionally, cable companies are still facing a low move activity environment and competition from FWA operators and fiber overbuilders.

Broadband net adds (thousand) (Company)

Video's revenue continued its sequential decline (-1% Q/Q) and retreated by 8% (Y/Y), with net losses standing at 408,000, the second consecutive quarter above 400,000. On the other hand, mobile net adds came strongly at 557,000, also driven by a free line promotion for former ACP subsidy recipients. Mobile revenue was up nearly 8% sequentially. During the quarter, Charter launched several initiatives, including Anytime Upgrade and a phone balance buyout program that allows customers to switch with the remaining balance on ported lines paid off up to $2,500.

Mobile ARPU was driven by upgrades to the Unlimited Plus plan priced at $40 per month and the Spectrum One promotional roll-off. ARPU would have been 2.7% if the ACP impact and stand-alone mobile revenue allocation had not been considered.

Moving on to the cost side, programming costs declined 4% (Q/Q) and nearly 10% (Y/Y) primarily due to a shrinking video customer base. Other cost of revenues was up by 6% (Q/Q) as a result of higher mobile direct costs and mobile device sales. Cost-to-service declined by 5% sequentially, given lower labor costs and bad debt expenses.

Adjusted EBITDA grew 3% sequentially despite management's estimate of a tepid growth last quarter. Margin came in at 41% vs. 40% in 1Q24, driven by a decline in the video segment that generates lower margins than the internet segment, Spectrum One promotional roll-off, and political advertising revenue.

Adjusted EBITDA and margin (Company)

Post share-based compensation free cash flow was $1.1 billion, up from $500 million last year, driven by lower cash taxes and favorable working capital. Management said that besides working capital timing, the company has been improving how it manages its balance sheet:

On that front, we've been managing the balance sheet to provide us better overall cash flow and increased flexibility . Over the last several quarters, we sold our towers portfolio, which generated almost $400 million in proceeds. We launched our EIP securitization program in the second quarter, which backs a new $1.25 billion credit facility at favorable interest rates. And we've been working with our vendor base to extend our payment terms , utilizing a supply chain financing tool to support our working capital favorability.

During the quarter, the company repurchased 1.5 million shares at an average of $271 per share for $404 million. Net debt to adjusted EBITDA was 4.32x, down from 4.41x in 1Q24, as management seeks to lower that number closer to the mid-point of the 4-4.5x target. Going forward, management anticipates the full-year Capex to be at $12 billion, down from the $12.2-$12.4 billion range, due to higher broadband and video net losses including lower CPE costs.

What Concerned the Market

We have read some concerns about Charter, including:

1. Declining core business because of the heightened competition , leading to depressed valuations.

2. A questionable past capital allocation strategy and whether Charter will remain committed to its leverage target.

Peaking FWA growth and more rational overbuilders

Our thesis remains unchanged in that Charter will report broadband net adds as FWA growth peaks. Indeed, Deloitte found that most of FWA subscribers were switchers from DSL and cable. Additionally, according to Opensignal, 74% of FWA subscribers spent less than $75 per month, compared to just 60% of Cable subscribers. Thus, cost was a key factor in switching to FWA services.

However, another study by Opensignal shows that Charter's Spectrum led against the big three mobile network operators in download speed, consistent quality, and video experience. Please note that this study includes all technologies deployed by the ISPs in question, including DSL and fiber. T-Mobile (NASDAQ: TMUS ) and AT&T (NYSE: T ) underperformed in those categories, since T-Mobile relies completely on FWA , while a third of AT&T's customer base came from non-fiber. So, we can conclude that Cable has no glaring problems with the broadband performance, and they have been losing customers mostly due to lower-priced FWA and its ubiquitous coverage.

There is light at the end of the tunnel, as FWA operators have not yet revised their subscriber number targets. Moreover, T-Mobile management said that ~400,000 quarterly net adds are all it needs to reach its target, down from 550,000 customers quarterly. Verizon (NYSE: VZ ) recently deployed its C-band spectrum in the suburban and rural areas. However, management did not update its 4-5 million subscribers target on the 2Q24 earnings call . Markets have been concerned about the capacity available for FWA services in the long run.

FWA operators' net adds (Companies)

On the other hand, fiber overbuilders have been rationalizing their expansion strategy as inflation, permit process, financing difficulties, and higher labor costs have led to lower-than-expected returns. We are of the view that once Charter begins upgrading its existing hybrid-coaxial network, and that FWA growth peaks, it will start growing its internet broadband customer base.

Spending billions to buy back shares while adding debt, but now the stock yields 9%...

In total, Charter has been spending $73 billion on stock buybacks, reducing over 50% of diluted shares outstanding. Nevertheless, questions have been asked about the rationale behind Charter's aggressive stock buybacks even when the stock price was at peak. For instance, the company spent $4 billion buying back shares at an average $753 per share in 3Q21. These repurchases have historically been funded by free cash flow and debt .

In theory, if earnings yield is higher than the after-tax cost of debt, it might be a good strategy to fund share repurchases with debt. However, Charter's cost of debt ranges from around 4.5% to 5.5%. The after-tax cost of debt is from 3.5% to 4%. So, questioning past stock buybacks, especially during the 2021 peak when the yield was below the after-tax cost of debt, is valid, in our view. However, following the massive drop in 2021, the stock has been yielding above the after-tax cost of debt.

...while remained committed to stay within its leverage target

On the 2Q21 earnings call, management said:

On share repurchase, we've been targeting a leverage to be at the mid to high end of our target leverage range. And so the buybacks, we think about the long-term value of Charter, and we think it's high. And so really, when we look at buybacks, it's more about the target leverage range target, as opposed to trying to be opportunistic for not day triggers .

Charter's capital allocation strategy is to buy back stocks while retaining, instead of reducing, its leverage ratio target. This has been the case since 2016. However, Charter's aggressive stock buybacks have indeed helped increase the stock price since 2016. Additionally, Charter is simultaneously repurchasing its shares and paying down its debt . Thus, as things stand, we believe that Charter remains committed to buying back stocks without exceeding its leverage target.

Charter's net debt to EBITDA (x) (Koyfin)

Investment Risks

The impact of acp disconnects in the 3q24 and 4q24.

The ACP program ended in February, but the subsidy was reduced to zero only in June . We should expect more disconnects in the third and fourth quarters this year, primarily in the third quarter. JPMorgan analysts anticipate broadband net losses of 300,000 in the 3Q24. The stock could be under pressure if net losses were higher than expected.

FWA growth does not peak after reaching the 2025 targets

Improved spectral efficiency and more base stations will result in more capacity, which could lead to sustained FWA subscriber growth post-2025.

The stock is trading below the 5-year average of earnings and EBITDA multiples. Charter and Comcast (NASDAQ: CMCSA ) have seen multiple contractions from the 2021 peak levels, as broadband net adds have been soft following the proliferation of FWA (see Figure 10).

Charter's multiples (Koyfin)

Broadband net adds (thousand) (Companies)

Based on our 10-year reverse DCF model with 2025 as the base year , the market is expecting only 0.7% annual revenue growth, 24% EBIT margin, and 3% FCF growth. Our assumptions include a 7% WACC and a 6x terminal EV/EBITDA multiple. We utilized revenue growth consensus estimates from Seeking Alpha .

However, if we conservatively assume a 1.5% long-term revenue growth, driven by broadband net adds and mobile revenue growth, and a 25% operating margin in the terminal year, we arrive at $482 per share (26% upside potential) by 2025F. This implies an 8x forward EV/EBITDA, still below the 5-year average of 9x. The stock catalyst is broadband net adds, in our view.

10-year reverse DCF (Vektor Research)

Lower-than-expected broadband net losses have led to a surge in the stock price. Mobile net adds came in strongly, even if we excluded a free line promotion for former ACP subsidy recipients. However, we should expect higher broadband net losses in the 3Q24 since the ACP subsidy was down to zero in June, which can put pressure on the stock price if net losses are higher than expected.

Markets are concerned about deteriorating core business, a questionable past capital allocation strategy, and whether Charter will stay committed to its leverage target. However, we believe that peaking FWA growth, more rationale fiber overbuilders, and existing network upgrades will result in broadband net adds, which will drive the stock price. In addition, Charter is buying back stocks at 9% yield vs. 4% after-tax cost of debt, while simultaneously reducing its debt levels to its mid-point target. We believe that Charter will buy back stocks while staying within its leverage target.

The market is anticipating a tepid long-term growth rate. Our conservative estimates suggest that Charter's fair value is $482 per share by 2025F (26% upside potential). This implies an 8x forward EV/EBITDA, lower than the 5-year average of 9x. The stock catalyst is broadband net adds, in our view. What could go wrong? Besides short-term headwinds from ACP disconnects, sustained FWA growth due to improved spectral efficiency and more base stations are key investment risks.

Maintain BUY. If you have any question, please do not hesitate to comment below.

This article was written by

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CHTR, VZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. This is not an investment recommendation. Please do your own due diligence.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Search Utah State University:

New collaborative research generates lessons for more adaptive lake management.

"Sometimes the crazy ideas lead to watershed improvements."

That was a key takeaway from new research conducted by Utah State University, published in the American Society of Civil Engineer’s Journal of Water Resources Planning and Management . Using Google Sheets during video calls, 26 Colorado River Basin managers and experts took on water user roles to discuss consuming, banking and trading Colorado River water.

David Rosenberg gathered feedback from 26 Colorado River Basin managers and experts took on water user roles to discuss consuming, banking and trading Colorado River water.

As Western states face aridity and reservoir levels depleting, more of the water available for consumption and conservation comes from reservoir inflow, not storage. Water banking gives users more flexibility to respond to variable inflow and declining storage. Banking contrasts with current river management that requires California, Arizona, Nevada and Mexico to reduce their consumption as Lake Mead levels decline.

"This immersive, online and collaborative approach was different from previous methods that relied on offline models or complex computing systems to predict water needs and set rules," said David Rosenberg, the study lead and professor in the Civil and Environmental Engineering Department. "This method allowed participants to directly interact and collaboratively improve reservoir operations."

Collaborators stated that the modeling project was fun, more holistic and encouraged them to think about equity issues. Several collaborators also shared that a Lake Powell-Lake Mead water bank would be "a huge leap from management today."

Feedback from those 26 managers and experts helped improve the collaborative process, increase flexibility, and generate new insights for management. Rosenberg’s research identified 10 key takeaways.

• Model to provoke discussion about new operations rather than propose a solution. This is a desirable prelude to more formal evaluation of solutions or quantifying tradeoffs.
• Solicit feedback early to allow collaborators to improve a management alternative and the online environment in which the alternative was modeled.
• Identify points of conflict to focus limited time during model sessions to provoke discussion on future operations rather than mediate or try to resolve conflicts.
• Provide model options showing different ways to approach points of conflict. Options turn conflicts into choices. Collaborators can then think about and discuss the choices.
• Prorate reservoir evaporation by water account balance. Parties with larger account balances shared more responsibility for reservoir evaporation.
• Many options exist to prevent reservoir draw down below the protection volumes specified in federal regulations.
• Allow trades to increase management flexibility. There was much active trading within the collaborative model environments.
• Manage the combined storage in Lake Powell and Lake Mead to offer more flexibility.
• Find common benefits such as ability to more adaptively manage one’s available water more independently of other users.
• Recognize the limits of a model’s acceptability and potential adoption.

Rosenberg’s research follows on previously published works in 2023 and 2022 that showed other ways to adapt Lake Powell and Lake Mead releases to variable inflow and declining storage.

"I am excited to use immersive, online and collaborative models in other river basins and at different spatial and temporal scales," said Rosenberg.

For more information, click here .

Writer : Sydney Dahle, [email protected] , 435-797-7512

Contact : David Rosenberg, [email protected] , 435-797-8689