Research

Research or “sell-side” analysts are commonly considered the heart of an investment bank.  Research analysts value publicly traded stocks and provide recommendations to investors on whether to buy, hold, or sell the stocks they follow.  They also forecast companies' future earnings.  Equity analysts typically focus on one industry and will cover up to 10 companies' stocks.  They are specialized in sectors such as retail, oil & gas, and financials and publish reports on their analysis of stocks in their sector.  Research professionals also publish reports on their sector as a whole and provide insights into trends and current conditions present in the sector.  Good research analysts are extremely detail oriented and rely upon focused, disciplined analysis to reach their investment recommendations.  Some research analysts work on the fixed income side and will cover a particular segment, such as a particular industry's speculative bonds.  Salespeople within the investment bank utilize research published by analysts to convince their clients to buy or sell securities through their firm.  Corporate finance bankers rely on research analysts to be experts in the industry in which they are working.  Highly regarded research analysts can generate substantial corporate finance business for their firm as well as substantial trading activity, and thus are an fundamental part of any investment bank.