This video discusses the difference between sell-side analysts and buy-side analysts.
Sell-side analysts typically work for a brokerage firm or an investment bank and follow one or more companies within a specific industry. They forecast a company’s earnings per share, issue a price target for the stock, and provide buy/sell/hold recommendations in the hope that investors would find the information useful and choose to do business with their investment bank or brokerage firm.
Buy-side analysts, on the other hand, typically work for a pension fund, charitable foundation, or other large investor. The buy-side analyst’s job is to identify attractive investment opportunities for their employer. A pension fund with $100 million to invest would rely on buy-side analysts to determine the appropriate investment strategy. Buy-side analysts in turn may interact with and rely on the information provided by sell-side analysts.