Analyst coverage?As we wait for the "fulsome" update from CSCI "shortly", in the words of the last news release nine days ago, and the imminent top-line results from the pediatric diagnostic trial, initiation of the multi-dose phase of the avenanthramide clinical trial as well as first potential human trial results, and the potential peer-review article on PGX-YBG/fibrosis, as well as the PGX presentation on October 8, 2024 before a conference of engineers I wondered about the potential for analyst coverage. AEZS had coverage from H.C. Wainwright before the merger so analyst coverage wouldn't be unprecedented for AEZS. Given Bloom Burton and Research Capital participated in the merger what is the likelihood they will initiate coverage assuming the expected events are positive. I asked Perplexity Ai and this was the response:
Based on the information provided in the search results, it appears that Research Capital and Bloom Burton were involved in the merger between Ceapro and Aeterna Zentaris. While the search results don't directly address the likelihood of these organizations providing subsequent analyst coverage, we can make some informed inferences: Likelihood of Subsequent Analyst Coverage
It is quite likely that organizations like Research Capital and Bloom Burton, who participated in the Ceapro-Aeterna Zentaris merger, would provide analyst coverage following the transaction. Here's why:Familiarity with the Companies - These organizations have gained in-depth knowledge of both Ceapro and Aeterna Zentaris through their involvement in the merger process.
- Their understanding of the companies' operations, financials, and strategic plans positions them well to provide informed analysis.
Vested Interest - Having played a role in the merger, these organizations have a vested interest in the success of the combined company.
- Providing analyst coverage allows them to showcase their expertise and potentially attract more business in the future.
Industry Practice - It is common practice for investment banks and financial advisory firms that assist in mergers and acquisitions to subsequently provide analyst coverage on the companies involved.
- This continued involvement helps maintain relationships with the company and its investors.
Market Demand - The newly merged company, with its diversified portfolio and stronger financial position, is likely to generate interest among investors.
- This increased interest often leads to demand for analyst coverage to guide investment decisions.
While the likelihood is high, it's important to note that actual analyst coverage would depend on various factors, including the firms' internal policies, potential conflicts of interest, and regulatory considerations. Additionally, the timing and extent of such coverage may vary.