Stock Research Reports

What is Stock Research Report

A Stock Research Report, also known as an Equity Research Report, is a document prepared by an equity research analyst to guide investors on whether to buy, sell, or hold shares of a particular public company. It includes an investment summary, recommendation, and target price, along with a detailed overview of the stock's performance over the past year and a comparison with relevant indexes.

Stock Recommendation Reports not only provide details on the company's valuations and descriptions but also delves into its business model and future expected performance. It provides investors with a comprehensive financial analysis to aid in making informed decisions about buying, selling, or holding shares of that specific company.

Types of Research Reports:

• Company Reports:

Company reports provide details about the latest news of the company, highlighting announcements, earnings reports, and recommendations regarding shares - whether to buy, sell, or hold. These research reports cover developments that may impact the company's value.

• Initiation Reports:

Initiation reports, a type of stock research report, offer detailed insights by an analyst when they start covering a stock. These reports provide an in-depth overview of the company's products and subdivisions, along with its performance. Initiation reports can range from ten to hundreds of pages, depending on the company's complexity.

• Industry Reports:

Industry stock research reports offer general updates about specific industries, covering companies within the sector. These stock research reports also have other important things like interest rates, how much money a company earns, how much its loans are growing, and the rules it has to follow from the government.

• Commodities Reports:

Commodity research reports are compiled on a daily or weekly basis to provide deeper insights into commodities. They often include market opinions from commodity analysts or traders.

• Flash Reports:

These stock research reports brief 1-2 page offer quick commentary on news releases or other pertinent information.

These different types of research reports each give a little bit of information about stocks and company. When you put them all together, they help us understand companies and markets better. For example, Company Reports tell us about a company's news, while Industry Reports look at trends in a whole industry. Each report adds something important to our understanding of stocks.

Buy Side vs Sell Side Stock Research Reports

It's important to understand the difference between buy side and sell side stock research reports.

Buy side firms, like asset management companies, have their own internal research teams that generate reports and recommendations for the firm and its portfolio managers. These buy stock research reports guide decisions on which stocks to buy and sell. They're strictly for internal use and aren't shared with the public.

On the other hand, sell side firms, such as investment banks, produce equity research reports to distribute to their sales and trading clients, as well as wealth management clients. These reports are provided for free for various reasons and include specific recommendations to buy, sell, or hold, along with an expected target price.