IROs happier with analyst coverage, except in Asia

Investor relation officers are typically happier with their analyst coverage than they were in 2013, new research from IR Magazine shows.

Satisfaction with analyst coverage has improved since July 2013, with the numbers dissatisfied dropping by 8 percentage points since then, according to the recent study.

When more than 800 investor relations professionals were asked for their perspective on their company’s sell-side analyst coverage for the Q1 2016 Global IRO Survey, only 11 percent said they are dissatisfied, compared with 19 percent the last time this question was asked.

The average satisfaction score is 6.1 out of 10, with Europeans the most satisfied group with an average score of 6.7 percent. But Asian IROs, who were the most satisfied in 2013 with an average rating of 6.8 percent, are less satisfied now at 6.4 percent, the same average as North American IROs.

The average number of analysts covering Asian firms has fallen to 15.6 per company, putting Asian companies in line with North America and behind the global average of 16.6. European companies, however, are seeing increased coverage with an average of 18.4 analysts per company.

In terms of sector, the highest level of coverage comes from the consumer staples sector, where companies enjoy an average of 24.7 analysts each. The second-most covered sector is communications, with 21.9 analysts per company. At the other end of the scale, the sector with the least coverage is industrials, with an average of 14.7 analysts.