Equity research
BankingDefinition
Sell-side analysts at investment banks publish research notes (target prices, ratings, earnings estimates) on public companies. Free to bank clients; the cost is bundled into trading commissions.
Post-2018 MiFID II (Europe) requires research to be "unbundled" — paid for explicitly. Coverage has shrunk: smaller mid-caps go uncovered, while AI-related mega-caps see 30+ analysts.
Post-2018 MiFID II (Europe) requires research to be "unbundled" — paid for explicitly. Coverage has shrunk: smaller mid-caps go uncovered, while AI-related mega-caps see 30+ analysts.