If a company has no sell-side coverage, how do you explain how your variant opinion of the Company differs from the market?
In a stock pitch for an interview, one of the most important thing to convey with this question is that you are capable of thinking in a differentiated manner. How are you different from the Street? What is "priced in" to the stock? What have you done in your research that you'd consider proprietary, e.g. that you haven't seen covered in the various sellside reports? All of these are really critical to crafting a coherent investment thesis.
My question is: if there is no sell-side coverage, do you just go ahead and skip this in a written/oral stock pitch for an interview?
Don't skip it.
just do a relative comparison on the valuation multiples. Where the stock is priced on an earnings or EBITDA basis is essentially where the "Street" believes its worth. You can acknowledge there is no sell-side coverage, but don't skip an opportunity to give an opinion.
The whole point of your exercise seems to be to find data on a stock that nobody else has published and then to explain why this results in the markets valuation being different to yours. That's much easier to do if no published research exists for the company.
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