5.2 Expanding Research Coverage
While large companies are generally assessed by a large number of analysts, many small and mid-caps set themselves the aim of enlarging their research coverage. Around half of the companies listed on SIX are covered only by one analyst or not at all, and the trend is rising. The problem for these companies is that the costs of the analysis for the financial institutions are higher than the earnings.
The following options are available in order nevertheless to receive coverage from analysts:
- Take the long road of conviction. Find analysts who cover a competitor, for example, and provide them as a high priority and at reasonable intervals with information as part of the IR program.
- Ask the «house bank» or an investment bank for a concrete offer. If an issuer is willing to commission the bank with the market making or the next capital increase, for example, it may be prepared in return to take on the research coverage. The service offered and how much it will cost will vary sharply or will depend essentially on the situation and size of the company. It is worth comparing several options with each other.
- Joining the «Stage» program of SIX (see the next chapter for more on this) or directly commissioning one of the specialist research boutiques.