We do love us some sell-side honesty here at FT Alphville:
Read Full Article »Having been a sell-side analyst for a decade, I can tell you that “owning” the low published estimate on First Call or Bloomberg isn’t easy. Your long-only clients probably own the name in size. They will argue that their financial model shows a better result, and you need to up your expectations. The company itself will likely tell you that you are being too pessimistic. Not directly, of course, but the message will be there. And your salesforce will constantly pepper you with rhetorical questions like, “My smartest clients love this name… What is your edge, exactly, versus their knowledge of the company?” It is much, much easier to just go with the crowd.
