Sell-side analysts are one of the most important stakeholder groups for IR teams, playing a vital role in getting a company’s message out to the market and supporting investor engagement. In this best practice report, we hear from leading IROs about how they work with the sell side to achieve the biggest value for their IR programs.
This article is an extract from the newly published Best Practice Report: How to engage with the sell side, in partnership with Visible Alpha.
Time is a notoriously precious commodity within the IR function, meaning IROs need to strike the right balance when it comes to how they divide their resources between different sell-side analysts. Neil Frohnapple is director of investor relations at Timken, a US-based global manufacturer of bearings and industrial motion products.
Sharing how he tackles the issue, he says: ‘Timken has 11 analysts who cover the stock and we try to participate in at least one non-deal roadshow or conference with each analyst every year. This provides an opportunity to spend quality one-on-one time with them outside of normal post-earnings call conversations.
‘We also spend more time as needed with the analysts who are newer to following the stock, to help speed up the learning curve for them and enhance our relationship.’
Call on external stakeholders
Calling on the knowledge of external stakeholders can help IROs determine where best to prioritize their time and efforts, according to Andrew Hanson, director of investor relations, corporate communications and ESG at Victrex, a UK-based supplier of high-performance polymers.
‘We try to balance time between everyone but, ultimately, for those who have a conviction position – either buy side or sell side – we will try to ensure they have the fundamental points,’ he says. ‘We do also take some viewpoints from key buy-side analysts or fund managers on who they regard as important sell-side influencers.’
This article is an extract from the newly published Best Practice Report: How to engage with the sell side, in partnership with Visible Alpha. Evaluate your IR working relationships with the sell side, discover the practical steps to build your coverage, maximize engagement opportunities to provide input into what’s said, to whom and in what format, and much more.