Is it OK to pitch a hold if you were assigned the company?
I've been assigned a small-cap industrial company as a pitch for an equity research interview tomorrow. I was hoping that something would happen to move the stock price one way or the other but the way I've calculated it, I have around 1% upside in the stock, and the earnings calls don't get me excited enough to pitch it as a buy. Investor sentiment is also mixed. Zacks says sell, FactSet consensus says buy.
Since I was assigned the stock, is it ok to pitch it as a hold? Or is that a huge no-no in equity research interviews?
Alternatively, I could always make it a 2-pronged pitch where I say something along the lines of "buy if you have an appetite for risk, hold if you are risk-averse"
sell side doesn’t get paid for neutral ratings. it’s either a buy or a sell. sounds like you don’t see any upside so why not pitch a sell and recommend some other names in the sector you like better
Delectus inventore odit et repellat quae recusandae optio. Expedita ut at error voluptas cumque. Minus laudantium omnis beatae et non saepe et. Distinctio et atque nostrum ullam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...