The surprise 10pc jump giving investment bank analysts hope
Research analysts have been cut out of IPOs and some fund managers’ processes altogether. Yet, share prices do still jump around on their views – sometimes more than expected.
Poor old sell-side analysts were cut out of Virgin’s $2.3 billion relisting last week. They were cut out of Guzman y Gomez and DigiCo Infrastructure REIT’s IPO marketing last year, too.
Some fund managers have stopped using them for their numbers in day-to-day coverage and analysis – like Sydney’s Aoris Investment Management – and we cannot remember the last time an investment bank boss talked about equities research as anything other than a cost centre.
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Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
