A fundamental equity analyst is expected to be able to build and maintain financial models for the stocks they cover. Therefore, you should create at least an income statement model on companies that you will be pitching in your interviews. If you need examples of how the street lays out a model then look at sell side research notes from Credit Suisse or Morgan Stanley. I choose those two firms as references because:
- Credit Suisse and Morgan Stanley tend to put models in most of the notes they publish so examples are relatively easy to find
- I find their models tend to be more complete/detailed than those of other firms
Make sure your models isolate the applicable what counts factors for the stocks in question. Also be sure your models allow flexibility to easily change key variables so you can do scenario testing without having to overhaul the model’s construction.
Tips for Preparing a Stock Recommendation
Stand Out by Going the Extra Mile
Know Your Audience’s Investment Time Frame
Know the 3 Key “What Counts” Factors for Your Stock Picks
Don’t Live in the Past
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