Analysts You Should Start Paying Attention To Now

In our last blog post, we wrote about how for IR teams, the number of analysts covering a company is in some respects less important than ensuring coverage from the influential analysts or to put it another way, the analysts that investors “value” enough to deem worth paying for in a post-MiFID II world. Our rationale being that the analysts most highly valued by investors are the ones that are most likely to survive the MiFID II fallout facing the industry in the next 12-18 months.

We previously listed the highest ranked analyst in each sector according the Extel 2017 survey, but by its very nature, this is a select and well known group that may not hold many surprises for the IR teams who are well aware of who is the leading analyst in their sector.

For the IR teams looking to pinpoint the analysts in their sector that are increasing their reputations with investors or even the younger generation of analysts who are currently proving themselves and will one day lead the pack, we have again worked with the Extel 2017 survey data to try and provide some guidance.

Below is a selection of analysts that in addition to seeing large year on year rises in their Extel rankings, received increased number of votes from investors and are also relatively new to the Extel vote (existed in the vote for less than 5 years) – A good place to start for IR teams who want to focus on aligning themselves with the rising stars who are gaining popularity with investors.

In a similar vein, we also mined the Extel rankings data to find analysts under the age of 40 who saw both a significant jump in their ranking and are also ranked within the top 20 in their sector – these are the analysts to watch as they continue to establish themselves with investors.

To return to a point made both in this and previous blog posts, as the impact of MiFID II takes hold there is a high probability that the industry will start to see a reduction in the number of analysts and for many corporates, there will be a subsequent reduction in analyst coverage. In this environment looking to the analysts who may not be the highest ranked but are increasing their reputation with investors is a useful tactic for IR teams to ensure they are aligned with the analysts of the future.