Guides / Career guides / Equity research
Equity research: get paid to have an opinion on stocks.
Equity research analysts cover a group of listed companies, build models, and tell investors what to buy or sell. Better hours than banking, more writing, and a stock pitch in every interview.
Sell-side research
At banks: publish reports and ratings on companies for institutional investors.
Buy-side research
At asset managers and hedge funds: research ideas for your own firm’s portfolios.
Banking or research?
| Compare | Investment banking | Equity research |
|---|---|---|
| Typical weekly hours | 75 to 100 | 55 to 65 |
| Year-one total pay (US, 2026) | $150,000–$200,000 | $100,000–$130,000 |
| What you produce | Pitch books, models, executed deals | Research notes, models, calls with investors |
| Where people go next | Private equity, hedge funds, corporate development | Investor relations most often, plus hedge funds and asset management |
Figures from published guides; they vary by bank and sector. Moving straight from research to private equity is rare.
A typical day in equity research.
A realistic junior day on a normal week. Live deals, results seasons and market shocks make it longer.
- 6:30
Read overnight news about the companies you cover and check pre-market prices.
- 7:15
Morning meeting: present any update on your stocks to the sales force.
- 8:00
Calls with salespeople and investors who want your view.
- 11:00
Update models after a company releases results or new guidance.
- 14:00
Write a research note: the key change, the impact on your estimates, and your rating.
- 18:00
Finish the note for compliance review. Results seasons are very busy; other weeks are calmer.
The career ladder and pay.
| Level | Typical years | What you do | All-in pay |
|---|---|---|---|
| Research associate | 0 to 3 years | Builds and updates models, drafts notes, supports a senior analyst | $130k to $220k |
| Senior associate | 3 to 5 years | Writes more of the research and starts to talk to investors | $200k to $300k |
| Analyst (vice president) | 5 to 8 years | Publishes under their own name on a group of stocks | $300k to $500k |
| Senior analyst (director or MD) | 8+ years | A recognised expert on a sector, ranked in investor surveys | $500k to $1.5m+ |
Approximate all-in pay (base plus bonus) in US dollars at large firms in New York in recent years. London is usually 20 to 30% lower; smaller firms and other cities pay less. Bonuses swing with the market.
How recruiting works.
Banks hire research associates through graduate programmes and directly into sector teams. Each team hires on its own schedule, so networking with analysts in the sector you want matters a lot.
Expect a stock pitch, a modelling test and a written exercise: a short research note on a company. Writing clearly is as important as getting the numbers right.
Who hires.
| Type | Examples | What it’s like |
|---|---|---|
| Global banks | JPMorgan, Morgan Stanley, Goldman Sachs, Bank of America, UBS, Barclays, BNP Paribas Exane | Large teams covering big listed companies worldwide. |
| Research-led brokers | Bernstein, Redburn Atlantic, Jefferies, Berenberg | Known for in-depth research and specialist sectors. |
| Regional brokers | Local brokers in Europe, Asia and the Gulf | Cover smaller companies; easier entry points. |
Firm names are examples, not a ranking or an endorsement.
Are you ready to apply?
Tick what you can honestly do today.
Your plan, step by step.
- 9 months before
Pick a sector
Follow 5 to 10 listed companies in one sector. Read their results.
- 6 months before
Build a model and write a note
Write a two-page initiation on one company. It becomes your stock pitch.
- 3 months before
Network by sector
Contact analysts who cover your sector and ask for feedback on your note.
- Interviews
Bring your work
Offer to send your note. It shows initiative and how you think.
Where it leads.
Buy-side investing
Long-only funds and hedge funds hire research analysts who know a sector well.
Investor relations
Listed companies value people who understand what investors want.
Corporate strategy
Industry knowledge carries over to companies in the sector.
Myths and reality.
“Research is dying.”
Research budgets have shrunk since MiFID II in Europe, but strong sector analysts are still in demand on both the sell side and the buy side.
“It’s just writing reports.”
Much of the job is talking: to investors, to companies and to salespeople.
What to read.
- Company annual reports and results presentations. The raw material of every model.
- Expectations Investing by Mauboussin and Rappaport. How to think about what a share price already implies.
- The FT’s Lex column. Short, sharp views on companies.
What they ask in research interviews.
Almost every process includes a stock pitch, plus valuation technicals. Try each before you open it.
Stock pitch Pitch me a stock.
Give your call (buy or sell), the thesis in three points, a valuation and price target, the catalysts that will prove you right, and the key risks. Keep it to two minutes and know the numbers cold.
Valuation When would you use EV/EBITDA rather than P/E?
EV/EBITDA ignores capital structure and non-cash charges, so it is better for comparing companies with different debt levels. P/E suits stable, profitable companies, and sectors like banks.
Valuation How would you value a bank?
Use equity-based measures such as price to book and P/E, often tied to return on equity. Enterprise value makes little sense, because debt is a bank’s raw material, not just financing.
Research What is a catalyst?
A specific event that could move the stock toward your target: results, a product launch, a regulatory decision, a management change or a deal.
Research What would make you change your rating?
New information that breaks your thesis, such as a profit warning, lost market share or a big change in valuation. Good analysts say in advance what would change their mind.
Fit Why research and not banking?
Point to enjoying markets, writing and forming views on companies over time, and show you have already followed a sector closely.
Test yourself: equity research
Questions from the Mandate app. Try each before you open it.
How does sell-side research differ from buy-side research?
Sell-side publishes for clients; buy-side informs its own fund. Sell-side analysts work at banks and brokers.
A sell-side price target usually refers to…
The analyst’s expected share price in about 12 months. Alongside a rating such as buy, hold or sell.
A company “beats” earnings when…
Results come in above consensus estimates. Shares can still fall on a beat if guidance disappoints.
Company guidance is…
Management’s own outlook for future results. Changes in guidance often move shares more than the quarter itself.
The equity research track is live in the app.
Stock pitches, operating models, sector deep dives and research interviews, on top of the Mandate core. Join the waitlist and we’ll tell you first.