Talking to sell-side analysts

I want to speak with a few sell-side ER analysts about a particular name in their coverage universe, however, I am not a client of any of the banks nor is the firm I work for. Would analysts still take the call and potentially still indulge me even though I'm not a client nor likely a potential client? 

 
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if your firm is "potentially" an institutional client...sure, a analyst would talk to you...especially if that means your firm potentially becoming a client.

A little analyst time is free to the bank...and if your firm becomes a client and uses the bank for some trading execution because of a conversation with an analyst, thats a win for the bank that cost nothing, and increased revenue.

This assumes that your firm has enough AUM to be potentially valuable as a client...over 200mm in AUM is usually enough...but of course, the more the better

 

It depends on the type of sell-side shop as some have said. Larger firms have busy analysts and it might just be hard to reach them. Boutique research firms can be strange. Some firms has tighter rules around talking to non paying firms.

If I think I can add something to the analysts research (which means I have seen reports) I will cold call or email an analyst. Tell them I’m not a client but want to chat. Some are happy to call and chat others bring sales in for a conversation. I’m very honest with sales about commissions and whether they have a chance.

So what’s my point? Be respectful of their time if you aren’t paying them and won’t likely pay them. Keep it short and be honest. Some firms will turn on research after just because they know that sometime in the future you might pay them if you keep accessing research.

Remember how firms think about analyst time. Pay $$$$ Calls with analysts. Pay $$$ models and odd call. Pay $$ models, quarterly call maybe and research. Pay $ research and maybe models. Don’t expect analyst calls. So if you aren’t paying, it is hard to justify a call with an analyst. when I stop paying a firm I cease reading all research even if it is active. Of course courtship phase is different. 

 

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