What determines which companies get covered by sell-side research?

Curious to know

Some of these stocks I'm looking at are not covered by sell-side research, despite being very good / solid companies

Feel that one of the reasons for mispricings on these companies is because there is no coverage on them 

However, I'm not sure if / what would make sell-side researchers cover the company. Ideally would like to use it as a potential catalyst for the stock price rising but want to confirm generally how one decides which companies get covered

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Comments (3)

Jun 2, 2021 - 10:59am

Trading volume (interrelated with market cap)

Whether the bank was on the IPO (then coverage is mandatory)

Whether the covered company needs financing down the road

Also, no one wants to cover conglomerates 

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