The challenges for small-caps
In general, the sell-side focuses more on larger-cap companies, due, at least in part, to the larger flow of trading commissions. As a result, many smaller companies have fewer sell-side analysts covering their stock. In fact, obtaining sell-side research coverage can be one of the biggest challenges for small-caps.
Persistence pays off
It might be difficult and it might take considerable time to win the attention of the sell-side, but persistence typically pays off. To increase your chances, in addition to strong business fundamentals, you need to make sure your investment proposition is compelling and effectively communicated to the right audiences. Simply put, the investment in a well-executed investor relations strategy with an emphasis on building relationships with the sell-side is time, money and effort well spent.