Sell-side Equity Research in a Nutshell

Updated: April 2 2023

By: Noah Edis

Updated October 25, 2026 with figures from AnaChart’s records.

There’s a reason Wall Street banks are known as “The Sell-Side” – it’s because their primary business is to help companies raise money by selling stocks and bonds. And the people who work in this division are called equity researchers, or just “analysts.”

Their job is to study individual companies and figure out whether they’re a good investment.

They track things like earnings, revenue, and profit margins, and then make reports for their clients to guide them about whether or not to buy or sell shares of that company’s stock.

But it’s not just about picking winning stocks. Equity researchers are also responsible for coming up with new investment ideas and helping to shape the overall market outlook.

To do that, they need a solid understanding of financial statements and accounting concepts, as well as experience in fundamental analysis and valuation.

But how does this impact your investment choices? Let’s take a closer look.

What Do Sell-Side Equity Research Analysts Do?

Sell-side equity research analysts are responsible for providing analysis and reports for clients, typically institutional investors such as hedge funds, mutual funds, and pension funds.

The sell-side equity research department is responsible for the generation of new ideas and the production of high-quality analysis. The department is usually divided into sector teams, each of which covers a particular industry or group of companies.

These are analysts and associates. Analysts are the people who produce the actual research reports, while associates support them by conducting fieldwork, gathering data, and performing other tasks.

Their work process can be categorized into three main tasks:

1. Information Gathering

Sell-side equity analysts are responsible for gathering information about the companies that they cover. This includes both financial information and non-financial information.

Research analysts can obtain financial information from a variety of sources, including company filings, earnings calls, and analyst presentations. On the other hand, they can gather non-financial information through fieldwork, such as meeting with company management or visiting factories.

2. Analysis

Once the necessary information has been gathered, it must be analyzed to make investment reports. This analysis typically takes the form of financial modeling, which is used to forecast a company’s future performance.

3. Report Writing

Sell-side equity research reports contain information on companies’ past performance, current situation, and future prospects.

It also includes the analyst’s rating (e.g., buy, hold, or sell) and price target for the stock. The reports are then distributed to the firm’s clients to help them make investment decisions.

Every report ends in a rating and a price target. Across 729,921 rated calls in AnaChart’s records, 63.4% were Buy, 31.7% Hold and 4.9% Sell.

Buy targets sat a median 23.1% above the share price on the day they were set. Hold targets sat 6.1% above.

Key takeaway: A Buy is the label on 63.4% of rated calls, so the target and the record behind it carry more detail than the rating.

Buy-Side vs. Sell-Side Analysts: What’s The Difference?

The main difference between buy-side and sell-side analysts is the type of client that they work for. Buy-side analysts work for institutional investors, such as hedge funds and mutual funds. Meanwhile, sell-side analysts work for banks and other financial institutions.

Another difference is the type of research that they produce. Buy-side analysts tend to produce more in-depth, fundamental research. In contrast, sell-side analysts tend to produce shorter, more concise research reports.

A final difference is the compensation structure. Buy-side analysts are typically paid a salary plus a bonus based on their performance. On the other hand, sell-side analysts are typically paid a salary plus a commission based on the number of research reports they sell.

For more on how the two sides work together, and on the two analyst jobs, see our guides to the buy side and the sell side and to buy-side vs sell-side analysts.

What Is The Difference Between Equity Research And Investment Banking?

There is some overlap between equity research and investment banking, as analysts at investment banks may also do research on companies. However, the two functions are separate, and analysts typically specialize in one or the other.

Basically, investment bankers are responsible for helping companies raise money by issuing and selling securities. Equity researchers, on the other hand, provide analysis of publicly traded companies.

What Is The Difference Between An Analyst And An Associate?

An analyst is typically the title given to someone who has been working in equity research for a few years and has gained some experience. In contrast, an associate is someone new to the field and still learning the ropes.

Analysts typically have more responsibility than associates, such as creating reports and making client presentations. They may also be involved in meeting with company management and other investors.

Associates typically assist analysts in their work and learn from them. They may also have some responsibility for creating reports, but their primary role is to learn about the industry and the market.

What Is a Sell-Side Equity Research Report?

An equity research report is a document that provides an in-depth analysis of a particular stock. The report typically includes a company overview, financials, valuation, and analyst commentary.

The main purpose of an equity research report is to help investors make informed decisions about whether or not to invest in a particular stock.

The report should provide an objective overview of the company’s financials and valuation, as well as the analyst’s opinion on the stock.

Here are the typical components of an equity research report:

• Company overview – This section provides a brief overview of the company, including its business model, key products and services, and competitors.
• Financials – This section includes a detailed breakdown of the company’s financial performance, including revenue, operating income, net income, and EPS.
• Valuation – This section provides a valuation of the company, including its price-to-earnings (P/E) ratio and enterprise value-to-EBITDA (EV/EBITDA) ratio.
• Analyst commentary – This section includes the analyst’s opinion on the stock, including whether or not it is a buy, sell, or hold.
• Investment risks – This section discusses the key risks associated with investing in the company.
• Catalyst – This section includes a discussion of the key events or factors that could impact the company’s stock price.

Different types of sell-side equity research reports

There are three main types of equity research reports:

1. Top-down analysis – This type of report starts with a macroeconomic overview of the market, then drills down to individual sectors and companies.
2. Bottom-up analysis – This type of report starts with a detailed analysis of individual companies, then drills up to sector and market level.
3. Hybrid analysis – This type of report combines elements of both top-down and bottom-up analysis.

Why Sell-Side Equity Research is Valuable

Sophisticated Professional Investors

The main customers of sell-side equity research are professional investors, such as money managers, hedge funds, and pension funds.

These investors rely on research reports to help them make informed investment decisions. Outside suggestions may be of limited value because you will almost definitely do your own due diligence before investing.

Mitigate Risk

One of the primary goals of sell-side equity research is to help mitigate risk for investors. By providing accurate and timely information, analysts can help investors avoid making costly mistakes in their stock picks.

Get an Edge on the Competition

Many professional investors subscribe to multiple research reports to get a broad overview of the market. This gives them an edge over investors who only rely on their own analysis.

Get Unbiased Information

Remember that analysts are not always right about their analyses. However, by subscribing to a variety of research reports, you can get a more balanced view of the market and make better investment decisions.

In addition, sell-side equity research informs investors of the latest news and developments in the constantly changing equity market.

Enhanced Corporate Access

Regulations make it impossible for corporate management teams to selectively provide important information to investors, posing a problem for huge fund managers who frequently require precise information when appraising a stock.

To get around this, fund managers frequently attend meetings sponsored by sell-side companies with contacts with executives of their research subjects, where they may meet company management teams.

Sell-side businesses’ institutional customers can also convey the most important issues they wish to see addressed by corporate management in quarterly earnings conference calls and reports.

Idea Generation

Sell-side equity research reports can be a valuable source of investment ideas. By reading these reports, you can get a better understanding of the companies that interest you and the stocks worth watching.

Creating Context

For skilled investors, reports may be most valuable as a way to establish a meta viewpoint. Short-term variables significantly impact stock values, so investors may learn about price fluctuations by keeping an eye on the whole research environment.

Consuming research also enables investors to assess the temperature of the sector and compare current conditions to previous happenings. In the market, history tends to repeat itself, thanks in part to the industry’s inclination to shake during collapses and attract new professionals during bull runs.

Having a detached viewpoint can help illuminate cyclical tendencies, making it simpler to spot alarming signs that might otherwise go unnoticed by the untrained eye. As a result, new investment possibilities are generated.

That said, investors should avoid research that just reinforces their own prejudice – a powerful factor that has undoubtedly contributed to market booms and collapses in the past.

Three calls from the past year

On 6 May 2026, Stacy Rasgon of Bernstein raised his AMD target from $265 to $525 with the stock at $421.39. Ninety days later AMD was at $482.05.

On 4 February 2026, Timothy Arcuri of UBS cut his AMD target from $330 to $310 with the stock at $200.19. Ninety days later AMD was at $341.54, above his new target.

On 30 July 2026, 19 of the 20 analysts who moved on Meta cut their targets, with the stock at $539.03. Ken Gawrelski of Wells Fargo cut from $835 to $640. By 24 September Meta was at $777.59, past 12 of the 20 new targets.

Challenges When Choosing a Sell-Side Equity Researcher

Many analyst reports are available for free on the internet. The sheer number of firms providing sell-side equity research can be overwhelming for investors.

So how can you determine which research reports are worth your time and money?

Here are a few factors to consider when choosing a sell-side equity research analyst:

1. Consider the firm’s reputation

First is the reputation of the sell-side equity research firm. Does the firm have a good track record? Are its reports well-regarded by other investors?

A firm’s track record can be counted. In AnaChart’s study of 43 firms, Wolfe Research reached 80.0% of 4,935 targets. H.C. Wainwright reached 44.3%, and its targets sat an average 83.8% above the price. Across the study, firms with bolder targets reached fewer of them.

Key takeaway: The share of targets reached ran from 80.0% to 44.3% across 43 firms, a 35.7 point range.

2. Consider the analyst’s experience

Second, consider the experience of the analyst who wrote the report. How long has the analyst been covering the stock? Does the analyst have a good track record?

An analyst’s record is per stock, not per person. We found 96 analysts with 10 or more targets on three or more of 46 big stocks. 28 of them were above 80% reached on every stock.

39 had a gap of 30 points or more between their best and worst stock. Gil Luria of D.A. Davidson runs from 20% to 95% across 12 stocks.

Key takeaway: Gil Luria reached 20% of his targets on one stock and 95% on another, so the record on your stock is the one to check.

3. Consider the firm’s coverage universe

Third, consider the firm’s coverage universe. Does the firm cover a lot of stocks or just a few? If the firm only covers a few stocks, is your stock one of them?

4. Consider conflicts of interest

Fourth, be aware of any potential conflicts of interest. Does the firm have a banking relationship with the company? Does the firm’s parent company have a business relationship with the company?

5. Consider the price

Finally, consider the price. How much does the report cost? Is it worth the price for the information it provides?

These are just a few factors to consider when choosing a sell-side equity research analyst. Ultimately, you should use your own judgement to decide which reports are worth your time and money.

However, what if there’s a way to view all these analysts’ price targets and ratings in one place?

Welcome to AnaChart. AnaChart is the only website that shows analysts’ past and present action. Other sites present current price targets, but none show previous ones for users to get context other than AnaChart.

Easily find and follow any analyst that outperforms the market. AnaChart assists you in determining which analyst price goals and ratings are essential so that you can feel more confident in your investments and spend less time worrying.

AnaChart’s simple, elegant design makes it easy to find and track the analysts you care about. Simply enter a ticker symbol to view an interactive chart of the stock price over time.

By comparing it to the previous day’s close, you can also see how much the stock has risen or fallen above and below the strike price over time.

You can also view the price target history for each analyst. This way, you can quickly and easily see how accurate the analyst has been in the past and get an idea of whether or not their current ratings are likely to be accurate.

In addition to price targets, you’ll also see analyst ratings (strong buy, buy, hold, underperform, sell) on the chart. This lets you quickly see how bullish or bearish the analysts are on a particular stock.

Also, outside ratings and price targets, you will get the following:

• Line per analyst per stock, separately and together
• Duration since the last posted price target
• The frequency of stock prices realizing price targets
• The average time it takes for price targets to be realized
• Performance scores for stocks so you can identify which analyst model works best
• Statistics regarding average success on analysts price targets fulfillment and average duration in doing so

AnaChart is the only website that provides all this information in one place. So, if you’re looking for an easy way to find and follow the best sell-side equity research, AnaChart is the place to go.

 

 

 

 

 

Long records and short records: seven calls

The checklist above asks how long the analyst has covered the stock and whether the record is good. AnaChart’s stock pages answer both with one figure: targets reached out of targets set on that stock.

Here are seven recent calls, four from analysts with 60 or more targets on the stock and three from analysts with five or fewer. We picked them as examples, not as a measure.

On a phone, swipe the table sideways to see every column.

Three of the four long-record calls were reached. Peter Benedict of Baird has reached 78 of 79 Costco targets.

On 12 December 2025 he cut his target from $1,125 to $1,000 with a Buy, 13% above the $884.47 price. Costco passed $1,000 by the week of 1 March 2026.

A long record is not a promise about the next call. Vivek Arya of Bank of America has 62 of 67 on Intel. On 28 July 2026 he kept a $160 target with a Buy, 85% above the $86.30 price.

Intel rose to $127.39 by 27 September, and the target has not been reached so far.

Key takeaway: Vivek Arya has reached 62 of 67 Intel targets, and his $160 target sat 85% above the price on the day he set it.

On Microsoft, two analysts set targets close together with different records. Karl Keirstead of UBS, at 60 of 67, set $480 on 27 July 2026, and Microsoft passed it within 13 days.

William Power of Baird, at 2 of 5, set $500 in April, and it took 165 days.

A short record tells you less in either direction. Emily Field of Barclays has 0 of 4 on Eli Lilly, and her $1,400 target from July has not been reached so far. Four targets are too few to judge her by. Seventy-nine are not.

What to do with this

1. Count the analyst’s targets on the stock. A record of 78 of 79 rests on far more calls than 2 of 5. The Price Targets Met Ratio on each AnaChart stock page shows both numbers.
2. Check the firm’s record as well. In AnaChart’s study of 43 firms, the share of targets reached ran from 80.0% at Wolfe Research to 44.3% at H.C. Wainwright.
3. Read the disclosures at the end of the report. FINRA Rule 2241 requires each report to show the firm’s share of Buy, Hold and Sell ratings and a price chart with the dates the rating or target changed.
4. Read more than one report on the stock. On 22 October 2026 the highest live target on 46 big stocks was a median 1.77 times the lowest.

How we measured this

Calls, ratings and targets come from AnaChart’s records of sell-side analysts through 5 October 2026. The price on the day of a call is the closing price AnaChart recorded that day, adjusted for later stock splits and without dividends.

To judge whether a target in the table was reached, we used the closing prices AnaChart records on days analysts publish, one point a week.

A target counts as reached in the first week such a price was at or past it, so the true date can be a few days earlier.

Each analyst’s record on the stock, counted as targets reached out of targets set, was read from AnaChart’s stock pages on 22 October 2026. Those pages count every trading day, so their figures are the official ones.

Long and short records are counted by the targets each analyst set on that stock, as listed on AnaChart’s stock pages on 22 October 2026.

Sources

1. FINRA, Regulatory Notice 15-30, Research Analysts and Research Reports (Rule 2241), 2015
2. U.S. Securities and Exchange Commission, Regulation Analyst Certification, Release 33-8193, 2003
3. Bradshaw, M., Brown, L. and Huang, K. (2013). Do sell-side analysts exhibit differential target price forecasting ability? Review of Accounting Studies 18(4)

Related Reading

• How Do Sell-Side Analysts Interact with Firms?
• Buy-Side vs Sell-Side Analysts
• Why Do Firms Hire Sell-Side Analysts?

Last Updated: October 2026. This article has been reviewed and updated to reflect current market conditions and the latest analyst data available on AnaChart.

Related on AnaChart: browse the top performing analysts by sector, and compare platforms in AnaChart vs TipRanks.

For institutional teams: AnaChart’s full analyst price-target and accuracy dataset, every analyst, every target and revision since 2004, is available warehouse-native through AnaChart Corporate Access, delivered straight into Snowflake or Google BigQuery with no ETL.

Frequently asked questions

How often are sell-side price targets reached?

In AnaChart’s records, 70.9% of 575,976 targets from 3,332 analysts were reached at some point, in 335 days on average. The consensus target was within 10% of the share price a year later only 22.4% of the time.

What share of sell-side ratings are Buy?

Of 729,921 rated calls in AnaChart’s records, 63.4% were Buy, 31.7% Hold and 4.9% Sell.

Who pays for sell-side equity research?

Mostly institutional clients such as mutual funds, pension funds and hedge funds, through trading commissions or direct research fees. Many brokers also give research to clients with an account. The headline ratings and targets reach everyone else through the news.