Equity Research Analyst

Equity research analysts research and track information on companies in specific industries and provide analysis on companies’ performance.  The information can be used by investors to decide what stocks to buy or sell and by Private Equity firms and Investment Banks to value companies for investments, mergers, IPOs etc.

Job Details
Work Details: 

The job of an equity research analyst basically involves analyzing historical financial statements and forecasting future earnings performance of companies, using a combination of financial tools, financial theory as well as incorporating the analyst’s views which are influenced by discussion with company management. One of the key attributes of an equity analyst is that one must have strong views on one’s sector coverage.
 
An equity analyst typically has a selection of companies he or she tracks and recommends to investors for trading actions. If one is optimistic about a company’s performance, this would most likely be reflected by issuing a “BUY” or “Outperform” rating on the stock, or “SELL” or “Underperform” rating if otherwise. He or she tracks information on these companies and makes sure he is up to date on events.
 
You need a decent, quiet office space because the job involves a lot of mental work in order to properly articulate thoughts. It can be tough at times as it involves a lot of information gathering and data analysis, which have to be done with a lot of precision. As an analyst, you are only as good as your most recent recommendation and your reputation depends on your track record. As such, it is vital you get it right. Work as an equity research analyst is also enhanced and maximized where it is done with a firm that appreciates research. 

Entry / Training Requirements: 

You can start with any qualification provided you are willing to learn and apply yourself. The skills involved include financial statement analysis, valuation, financial modelling, as well as proper communication, presentation and writing skills.

Post graduate experience is useful also as you would have gained the theoretical knowledge, which will make it easier for you to relate with the real work.

Obtaining professional qualifications is a very good means to developing one’s career. The Chartered Financial Analyst (CFA) exam is the foremost professional qualification in this space. You may also seek training and development in financial modelling, valuation and other soft skills. You can also enhance your knowledge by watching business television stations like CNBC Africa and Bloomberg TV.

Opportunities & Pay: 

Typical employers are Investment Banks, Stockbroking firms and Asset Management firms. Running a Google search could help to find companies you could apply to. Starting out as an intern or graduate trainee to learn the ropes is a typical entry route. One could also volunteer prior to securing full time work to get work experience.
 
There is also the possibility of self-employment as a consultant, but you’d had to have vast experience. 
 
Remuneration depends on the firm. For the top investment banking companies, the pay is very decent but not as attractive as what you would get working in the Oil & Gas industry. Entry level compensation varies widely across firms. It could range between N3m-N10m for the top investment banking firms

Minimum Educational Level: 
Undergraduate Degree
Job Level: 
Supervisory / Middle Management
Job Level: 
Professional / Managerial
Salary Range Per Annum: 
3,000,000 - 5,000,000
Salary Range Per Annum: 
5,000,000 - 8,000,000
Salary Range Per Annum: 
8,000,000 - 15,000,000

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