Quality of analysts' work / experiences

Stocks
1

Hey,

The news behind the link brought the matter to my mind again… In short: the news says that Atria’s recommendations have not been updated even though the company issued a negative forecast on July 13, which is about three trading days ago (with the weekend in between).

  • Why does it seem that some analysts “don’t bother” with thorough and FAST information updates?

  • To my knowledge, Atria is followed by Finnish banks (OP and some other?). Does this speak to the poor quality of work, lack of resources, or something else at the big brick-and-mortar banks (are they primarily trying to direct the general public towards expensive investment funds or similar)? In general, I don’t think the depth of analysis from Finnish brick-and-mortar banks is anywhere near Inderes’ level…

  • Internationally, the same phenomenon has been observed, for example, with Nokia. I remember Mikael mentioning in his quarterly review preview videos (within the last year) that not all analysts seem to be up to date on the company’s situation. It feels somewhat incredible that the same phenomenon occurs in such large companies.

Does this spark any comments? Has anyone else wondered the same thing?

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I’ve noticed the same thing. I used to use OP Bank’s analyses but found that they made no sense. Kauppalehti also does better analysis, and even that’s a joke nowadays. The problem with banks is that they make so much money by tricking people into buying high-fee funds, so it’s not worth it to produce good, value-adding analyses, because with them people would invest themselves and not buy funds that banks profit from.

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You can also see the quality of an analyst’s work from the awards Inderes wins. They are awarded based on accuracy, and Inderes has always been at the top in recent years, unlike those bank “analysts.”

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The smartest people probably do something other than free analyses for consumer clients. Banks’ stock analyses are mostly marketing, but you can sometimes get ideas from them.

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