Independent Equity Research: What It Is, How It Is Funded, and Who Produces It

Equity research is written analysis of a company’s business, financial performance and valuation, led by one or more named analysts, so investors can judge the investment case for themselves. A full company report typically sets out what the company does, forecasts for revenue, earnings and cash flow, an estimate of what the business is worth, and the risks that could change that estimate. Shorter formats may carry only part of that.

Three common production models sit behind it. Sell-side research is produced by investment banks and brokers, and may be paid for by the firm from its own resources, by clients through a research payment account, or, where the rules permit, jointly with trading execution. Buy-side research is produced inside asset managers, hedge funds and pension funds for their own investment decisions and is usually not distributed as external company coverage. Independent research is produced by firms outside bank and broker research departments, and may be funded through investor subscriptions, issuer commissions or other sponsored arrangements, then published to investors directly.

Edison Investment Research Limited is an issuer-paid research firm authorised and regulated by the Financial Conduct Authority (firm reference 462261). As at August 2026, Edison publishes research on more than 300 companies , from AIM-quoted and under-covered businesses to large caps seeking wider investor reach. It is free to read for investors of every type: retail, professional and institutional.

Browse all companies under coverage →

What does an equity research report contain?

An equity research report is an assessment of a listed company, led by one or more named analysts: business overview, financial model, valuation, investment case and risk factors.

A full company report typically contains:

1. Business overview: What the company does, how it generates revenue, and where it sits in its competitive market.
2. Financial model: Analyst-built forecasts for revenue, earnings and cash flow, updated as new information emerges.
3. Valuation: An estimate of what the company is worth, using methods suited to its stage and sector. A pre-revenue biotech may be valued on a risk-adjusted net present value (rNPV) model. A mining company may be valued on a net asset value built from resource estimates and commodity price assumptions.
4. Investment case: The analyst’s assessment of the evidence for and against the company as an investment opportunity.
5. Risk factors: The conditions or events that could cause the investment case to change materially.

Shorter, event-driven formats do not all carry a full model or a full valuation.

What makes research on thinly traded stocks different?

Two risks are more acute in thinly traded stocks than in large caps: the cost of the bid-ask spread, and binary event risk. The bid-ask spread, meaning the gap between the price at which a share can be bought and the price at which it can be sold, can be wide enough in a thinly traded stock to erode a position before an investment thesis plays out. Binary event risk matters too: a clinical trial result, a regulatory decision or a resource update can change a company’s value overnight, and in an under-covered stock there is less published analyst work against which investors can compare the outcome.

Does Edison issue ratings or price targets?

No. Edison does not issue buy, sell or hold recommendations and does not publish price targets. Analysts set out the evidence and the valuation, and the investment decision remains with the reader.

What is the difference between sell-side, buy-side and independent equity research?

Sell-side research is produced by banks and brokers for their own clients. Buy-side research is produced inside asset managers for their own investment decisions and is usually not published. Independent research is produced outside bank and broker research departments, and Edison publishes its own free to read.

	Sell-side	Buy-side	Independent (Edison)
Who writes it	Investment banks and brokers	Asset managers, hedge funds, pension funds	Firms outside bank and broker research departments
Who pays for it	The firm from its own resources, or clients through a research payment account or a joint payment with execution, where permitted	The manager’s own budget	The covered company, under an issuer-paid model
Who can read it	The firm’s clients	Usually internal only	Edison: any investor, retail, professional or institutional
Ratings and price targets	Buy, sell, hold	Internal only	Edison issues none
Typical coverage	Large, liquid companies	The manager’s own holdings and candidates	Under-covered companies, plus large caps seeking wider investor reach
Cost to the reader	Varies by payment route	Not applicable	Edison: free
Conflict to manage	Banking and trading relationships	Not published	Issuer payment, managed by reporting lines and disclosure

What is issuer-paid equity research, and can it be independent?

Issuer-paid equity research is research commissioned and funded by the company being covered, then published to investors rather than restricted to paying clients.

Companies commission research for two broad reasons. Some want to reach investors beyond the institutions their existing brokers serve, including retail and international holders. Others have little or no analyst coverage and want an independent assessment of the business to exist at all. Edison covers both. In each case the company commissions the research, and Edison then publishes it beyond that company, free to read.

Independence from the commissioning company is maintained through guard rails. Investment conclusions, forecasts and valuations must be the view  of the Edison analysts. Analysts do not report to client management. The commissioning company may check a draft for factual accuracy, but has no contractual control over the analyst’s conclusions, forecasts or valuation. Before publication a research draft normally undergoes a dual review by an editor and a supervisory analyst, who ensure the research is clear, fair and not misleading. Analyst remuneration is determined by Edison, and the commissioning company has no input into it.

In what sense is Edison’s research independent?

“Independent” describes how Edison is organised and how its analysts work, not the regulatory classification of its reports.

Edison is independent in three practical senses. It is not part of a bank or broker, and has no internal corporate finance or sales and trading business whose revenue an analyst could be asked to protect. Its analysts do not report to client management  personnel. It issues no buy, sell or hold ratings and no price targets, so there is no rating for a commissioning company to lobby over.

Edison’s UK research reports state in their own disclaimers that they are marketing communications under FCA rules and have not been prepared in accordance with the legal requirements designed to promote the independence of investment research.

 The way to judge issuer-paid research is to read the controls and the disclosure, which Edison sets out in full. Read Edison’s research principles →

Is issuer-paid equity research biased?

Issuer-paid research carries a structural conflict of interest: the company being analysed funds the analysis. The model is therefore judged on the controls around it rather than on intent.

There are four at Edison. Analysts do not report to client management. The commissioning company may check a draft for factual accuracy but has no contractual control over forecasts, valuation or conclusions, and no input into analyst remuneration. Edison publishes no buy, sell or hold ratings and no price targets. Notes carry a named analyst, and drafts normally undergo dual review by an editor and a supervisory analyst before publication.

There is a second question worth answering: which companies Edison covers at all. Edison writes about companies that commission research, so the list of companies Edison covers is not a list of the best companies in a sector. If there is no Edison note on a company, that tells you nothing about that company. Read an Edison note as a detailed analysis of one business, with its funding disclosed, not as a recommendation to choose it over another.

Why do many smaller listed companies have no analyst coverage?

A large share of externally distributed equity research is produced by investment banks and brokerages, and coverage concentrates on large, liquid companies where expected investor demand and trading economics justify the cost.

Smaller and mid-cap listed businesses are generally less well covered, and some receive little or no regular published analyst coverage at all. A company can be publicly listed, actively trading and commercially significant, and still have no earnings estimates published, no independent valuation, and no structured assessment of its investment case available to investors searching for it.

The Investment Research Review, an independent review commissioned by HM Treasury, reached this conclusion about UK small caps, while noting exceptions. The same issue can arise in other markets. Filling that gap is one of the reasons Edison’s research exists, alongside coverage of larger companies that want to reach investors beyond their existing institutional base.

Which firms produce independent equity research?

Independent equity research is produced by specialist firms outside traditional bank and broker research departments, and Edison Investment Research is one of them.

Providers in this category differ on four things: how they are funded, whether coverage is single-sector or multi-sector, whether it is one country or global, and whether the research is gated or open. Edison is multi-sector, global and issuer-paid. Notes are published free to read at edisongroup.com, and Edison research is also distributed through professional platforms like Bloomberg, LSEG, FactSet and S&P Capital IQ, and aggregators such as Research Tree. Edison Investment Research Limited is authorised and regulated by the Financial Conduct Authority, firm reference 462261.

What does MiFID II mean for access to equity research in the UK?

The UK kept MiFID II’s research rules after Brexit, then rewrote them three times, and they now sit in the FCA Handbook rather than in MiFID II itself.

MiFID II applied in the UK from January 2018 and required research to be paid for separately from trading execution. The UK has since diverged three times:

• March 2022. PS21/20 exempted research on issuers below £200m market capitalisation from the inducement rules, alongside other exemptions.
• August 2024. PS24/9 gave firms the option to pay for third-party research jointly with execution again.
• May 2025. PS25/4 extended that option to fund managers.

Using the joint payment option is voluntary, and firms that adopt it must operate written policies, research budgets, a cost allocation methodology, client disclosures and a periodic assessment of value.

None of this changes how Edison prices or distributes its own research. Edison publishes free to read on edisongroup.com, and a reader pays nothing for it under either regime.

Equity research on AIM, UK companies and other under-covered markets

Analyst coverage is thinnest among smaller quoted companies, and for investors in that part of any market independent research can be one of the few forms of detailed, publicly accessible analysis available.

Large caps typically receive coverage from several sell-side analysts. Smaller quoted companies often do not, because the trading economics do not justify it. The UK is the clearest example: a company can be quoted on AIM or sit in the FTSE Small Cap index, trade actively, matter commercially, and still have no analyst covering it and no published earnings model. Every AIM company retains a nominated adviser and has a corporate broker, but neither role automatically includes producing research, and where a house broker does publish, access ranges from client-only to public. The same pattern appears on smaller exchanges in continental Europe, North America and Asia-Pacific.

Edison covers companies of this kind alongside larger companies seeking wider investor reach, in a range of sectors. [Browse research by sector →]

Where can investors find independent equity research?

Investors can find independent equity research on smaller and under-covered listed companies through Edison’s website, financial terminals, and research aggregator platforms.

Edison Investment Research publishes research on more than 300 companies across nine sectors, free to read. Edison publishes company research on company pages at edisongroup.com. Search by company name, sector or market from the coverage index at edisongroup.com/equities/.

Edison research is also distributed through Bloomberg, LSEG, FactSet and S&P Capital IQ for investors who access research through those platforms, though terminal access itself requires a paid platform subscription or entitlement. Research aggregator platforms such as Research Tree carry research from multiple independent providers, including Edison.

Broker research is a separate category. As above, an AIM company’s house broker may produce research on it, and access to that research varies from client-only to publicly surfaced.

What types of research does Edison publish?

Edison’s core long-form and event-driven research formats include initiation and outlook notes, update notes, flash notes, and sector and thematic reports.

Initiation and outlook notes. A long-form report giving a complete picture of the business, the financial model, the valuation and the investment case, with the depth an investor new to the company needs in order to evaluate it.

Update notes. Shorter follow-on reports published when material news or results occur. They may update the financial model and valuation in response to new information, explaining what has changed and why it matters.

Flash notes. A short, usually one-page piece designed as a rapid reaction to a specific piece of news.

Sector and thematic reports. Analysis of a sector or investment theme rather than a single company. These give investors context for how individual companies fit into broader market trends. Explore recent thematic research →

Edison also publishes other formats, including , QuickViews, insights and video content.

What sectors does Edison cover?

Edison’s analysts cover all sectors – divided into nine research teams globally. While a company is under commissioned coverage, Edison publishes updates as results and material developments warrant, and publishes a final note when forecast-bearing coverage is terminated. Browse research by sector →

Sector	Coverage focus
Healthcare	Pharma, biotech, medical devices, healthcare services
Metals and Mining	Gold, copper, silver, diversified miners
Technology, Media and Telecoms	Software, hardware, telecoms, media
Energy and Resources	Oil and gas, renewables, utilities
Financials	Banks, insurance, fintech
Industrials	Aerospace, defence, engineering
Consumer	Retail, food and beverage, leisure
Investment Companies	Investment trusts, closed-end funds
Real Estate	REITs, property companies

Frequently asked questions

Who is Edison Group?

Edison Group is the trading name of Edison Investment Research Limited, an investment research and investor relations firm founded in 2003, with its London and registered office at 20 Red Lion Street. It publishes issuer-commissioned equity research across nine sectors. It is authorised and regulated by the Financial Conduct Authority, firm reference 462261, and registered in England and Wales, company number 04794244.

What is equity research?

Equity research is written and financial analysis of a company’s business, financial performance and valuation, led by one or more named analysts. It gives investors a structured view of what a company does, what it may be worth, and the risks that could change that picture.

What is an equity research report?

An equity research report is a written assessment of a listed company, led by one or more analysts, covering the business model, financial forecasts, valuation and investment case. Edison publishes long-form initiation and outlook notes, shorter update notes when results or material news occur, and one-page flash notes designed as a rapid reaction to news.

What is an equity analyst report?

An equity analyst report is another term for an equity research report: the published output of an analyst’s coverage of a listed company. Edison’s analyst reports are published free to read at edisongroup.com, on each covered company’s page and through Bloomberg, LSEG, FactSet and S&P Capital IQ as well as other platforms.

What is issuer-paid equity research?

Issuer-paid equity research is research commissioned and funded by the company being covered, then made freely available  rather than sold to clients or subscribers. Edison operates on this basis. Conclusions, forecasts and valuations are the work of Edison analysts, and the commissioning company has no contractual control over the analyst’s findings.

Is issuer-paid research biased?

The conflict of interest is structural and is managed through reporting lines and disclosure. Edison analysts do not report to client management. Analyst pay is set by Edison. Edison issues no ratings and no price targets. Ongoing company coverage follows commissioned engagements, so the Edison list is not a market-wide screen.

In what sense is Edison’s research independent?

Edison is independent in an organisational sense: it is not part of a bank or broker, has no internal corporate finance or sales and trading business, and issues no ratings or price targets. Its UK research reports state in their disclaimers that they are marketing communications, not prepared under the legal requirements designed to promote the independence of investment research.

What is the difference between sell-side and independent equity research?

Sell-side research is produced by banks and brokers and distributed to those firms’ clients. Independent research is produced outside bank and broker research departments. Edison’s research is issuer-paid, free to read, and carries no buy, sell or hold ratings and no price targets.

Why do smaller companies have less equity research written about them?

Bank and broker research economics depend on expected investor demand and trading activity. Smaller and mid-cap companies generate less of both, so they are generally less well covered. For many AIM-listed and micro-cap businesses, independent research can be one of the few forms of detailed public analysis available.

What is equity research for AIM-listed companies?

Equity research for AIM-listed companies is analysis of the company’s business, financial performance and valuation, typically led by one or more specialist analysts. It addresses factors that are more acute in lower-liquidity stocks: the bid-ask spread, binary event risk such as clinical trial results or regulatory decisions, and the limited amount of published analyst work available for comparison.

Where can investors find research on AIM-listed companies?

Edison publishes research on AIM-listed companies free to read at edisongroup.com. Edison research is also available through professional platforms such as Bloomberg, LSEG, FactSet as well as aggregators like Research Tree. A house broker may also produce research on an AIM company, and access to that varies from client-only to publicly surfaced.

Where can investors access equity research reports for free?

Edison publishes its research free to read at edisongroup.com, for retail, professional and institutional investors alike. Reports are read on the relevant company’s page. Edison research is also distributed through professional platforms like Bloomberg, LSEG, FactSet and S&P Capital IQ, as well as aggregators such as Research Tree.

Closing block

Edison Investment Research covers more than 300 companies across nine sectors, from AIM-quoted and under-covered businesses to large caps seeking wider investor reach, in Healthcare, Metals and Mining, Technology, Media and Telecoms, Energy and Resources, Financials, Industrials, Consumer, Investment Companies, and Real Estate. Research is published free to read at edisongroup.com, for investors of every type.

Find research on a specific company → | Read our research principles →

Edison Investment Research Limited is commissioned by the companies it covers and publishes its reports free to read. Financial information on this site is issued and approved as a marketing communication under FCA rules, and Edison’s research reports carry their own disclaimers setting out the persons to whom they are directed. This information does not constitute personalised investment advice. Edison’s research describes the investment case; it does not constitute a recommendation to buy or sell. Edison Investment Research Limited is authorised and regulated by the Financial Conduct Authority, firm reference 462261. Company number 04794244. Registered office: 20 Red Lion Street, London, WC1R 4PS.