Research Disclosures

Production and Distribution of BCS Prime Brokerage Limited research reports

The information and opinions contained within BCS Prime Brokerage Limited research reports are prepared by research analysts associated with BCS Prime Brokerage Limited as indicated on the front page of every BCS Prime Brokerage Limited research report. Research reports produced by BCS Prime Brokerage Limited are distributed under the BCS Global Markets logo:

In the UK – by BCS Prime Brokerage Limited, authorised and regulated by the UK Financial Conduct Authority (company registration number 08040031, registered address at 99 Bishopsgate London EC2M 3XD) and are intended for and distributed only to persons who (i) fall within Article 19(1) (persons who have professional experience in matters relating to investments) or Article 49(2)(a) to (d) (high net worth companies, unincorporated associations etc.) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (as amended) or (ii) are professional clients or eligible counterparties of BCS Prime Brokerage Limited (all such persons together being referred to as “relevant persons”). They must not be acted on or relied upon by persons in the UK who are not relevant persons.

In the US - by BCS Americas, Inc., a broker-dealer regulated by the U.S. Security and Exchange Commission and FINRA member, with a main office location at 1270 Avenue of the Americas, Suite 1805m New York, NY 10020, an affiliate of BCS Ltd, which accepts responsibility for its contents. BCS Americas, Inc. did not contribute to the preparation of this report and the authors are neither employed by, nor associated persons of, BCS Americas, Inc., nor registered or qualified as research analysts with FINRA. The issuing entity and authors may not be subject to all of the disclosures and other US regulatory requirements to which BCS Americas, Inc. and its employees are subject. Any US person receiving this report who wishes to effect transactions in any securities referred to herein should contact BCS Americas, Inc., not its affiliates.

In Russia – by BCS Ltd (Full legal name: BrokerCreditService Ltd, Registration Number: 1025402459334, Registered Office: 37 Sovetskaya str., Novosibirsk 630099, Russia), regulated by the Central Bank of Russia, holding FFMS licenses No. 154-04434-100000 of 10.01.2001 for brokerage services, No. 154-04449-010000 of 10.01.2001 for dealing on own account, No. 154-04462-001000 of 10.01.2001 for assets management and No. 154-12397-000100 of 23.07.2009 for depository (custody) services. BCS Prime Brokerage Limited and BCS Ltd. are hereinafter jointly referred to as “BCS Global Markets”.

Conflict of Interest Disclosures and Arrangements

BCS Prime Brokerage Limited do and seek to do business with issuers referenced in the research reports. As such, BCS Prime Brokerage Limited Research reports may not be independent of BCS Prime Brokerage Limited proprietary interests. BCS Prime Brokerage Limited trades the securities and financial instruments referenced in the reports for its own account and on a discretionary basis on behalf of certain clients. Such trading interests may be contrary to the recommendation(s) offered in the reports. Thus, investors should be aware that the BCS Prime Brokerage Limited may have a conflict of interest that could affect the objectivity of its research reports. Investors should not consider BCS Prime Brokerage Limited research reports as only a single factor in making their investment decision.

Conflicts of interest disclosures on the companies covered/recommended by BCS Prime Brokerage Limited are provided on this webpage and research reports disseminated separately.

Even though BCS Prime Brokerage Limited currently only produces non-independent research, it has arrangements in place for regulating the flow of information between various business areas and ensuring a considerable degree of independence of research analysts and proper management of conflicts of interests. These include:

Issuer Specific Disclosures

Where an issuer referred to in a BCS Prime Brokerage Limited report is not included in the disclosure table, the issuer is either not covered by BCS Prime Brokerage Limited research analysts, or not interacting with us in a manner that would require a disclosure.

For further information regarding issuer specific disclosures, please contact your research representative.

Analysts Certification

The research analyst(s) whose name(s) appear on each BCS Prime Brokerage Limited research report certify: i) all of the views expressed in each research report accurately reflect their personal views about the subject security or issuer, and ii) no part of the research analysts' compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analysts in each BCS Prime Brokerage Limited research report.

Additional information concerning valuation methodology

BCS Prime Brokerage Limited research analysts employ a variety of methods for estimating the fair value of financial instruments covered by them. These may include, but are not limited to, a Discount Cash Flow (DCF) model, a Dividend Discount Model (DDM) and a valuation based on financial or asset-based multiples of the company and its peers. The research analyst's choice of methods used in each particular instance is based on the specifics of the investment case in question. The Target Price reflects the research analyst's informed opinion on the price which is likely to be attained by the financial instrument in 12 months, subsequent to the date of the Target Price determination. The Target Price is underpinned by the aforementioned fair value estimates, and will belong to the range established by them.

Information concerning valuation methodologies is provided below. In order to receive additional information concerning: i) a summary of any basis of the valuation or methodology and the underlying assumptions used to either evaluate a financial instrument or an issuer, or to set a price target for a financial instrument, as well as an indication and a summary of any changes in the valuation, methodology or underlying assumptions; ii) detailed information about the valuation or methodology and the underlying assumptions in any non-proprietary models; or iii) material information about the proprietary models used; please contact the authors of the particular research report.

BCS Prime Brokerage Limited research generally don’t set up any specific term of disseminated recommendations. Updates of recommendations are event driven and done at analyst’s discretion.

Research Investment Ratings

Specified in the research reports created by BCS Prime Brokerage Limited, long-term focused, fundamental recommendations for financial instrument under coverage can be broken down into the following Investment Ratings: Buy, Hold, or Sell.

The three main ratings correspond to the Excess Return, expected on 12-month forward horizon and defined as the difference between the Target Price and the Last Price as indicated by Bloomberg, divided by that Last Price, plus the expected Dividend Yield over the next 12 months, less the Cost of Equity. Concerning the Investment Rating system, the research producer assumes that the provided recommendation should satisfy the appropriate and reasonable threshold, which currently is equal to 10% for all equities under coverage. Therefore, the recommendations of Buy, Hold, and Sell have the following meanings: (as of the publishing date):

BUY: Excess Return exceeds the 10% threshold

HOLD: Excess Return is less than the 10% threshold, but greater than the 10% threshold multiplied by -1

SELL: Excess Return is less than the 10% threshold multiplied by -1

The above threshold may be reviewed and modified BCS Prime Brokerage Limited on any time, depending on the market environment. It is assumed that the above threshold may differ for different financial instruments, depending on their liquidity. BCS Prime Brokerage Limited Research confirms that published Buy, Hold or Sell ratings conform to actual definitions at the time a Target Price is established or an Investment Rating is revised. Between such revisions, day-to-day movements in the prices of financial instruments or FX movements could result in a temporary discrepancy between the Investment Rating and the aforementioned definition. Analysts address such discrepancies based on their scale and duration.

Notwithstanding the above, BCS Prime Brokerage Limited may from time to time issue investment recommendations predicated on a different time horizon (such as short-term trading recommendations) to that which is described above. Where BCS Prime Brokerage Limited issues such an investment recommendation, the use of an alternative time horizon for the purpose of formulating such investment recommendation may result in differences between such investment recommendation and any investment rating published in accordance with the Investment Rating system described above. In addition, short-term trading recommendations may result in short-term price movements contrary to the recommendations in this research report.

The below table details the distribution of BCS Prime Brokerage Limited and its affiliates Research Investment Ratings on the basis of the three-tier recommendation system described above.

As at: 

Investment Rating Distribution
Buy
2
67%
Buy
3
30%
Buy
43
51%
Buy
13
47%
Buy
7
58%
Buy
45
50%
Buy
27
25%
Buy
10
53%
Buy
7
58%
Buy
10
100%
Buy
2
40%
Buy
17
39%
Sell
0
0%
Sell
2
20%
Sell
11
13%
Sell
4
14%
Sell
0
0%
Sell
13
15%
Sell
20
18%
Sell
0
0%
Sell
2
17%
Sell
0
0%
Sell
0
0%
Sell
0
0%
Hold
1
33%
Hold
3
30%
Hold
26
31%
Hold
11
39%
Hold
3
25%
Hold
23
26%
Hold
30
27%
Hold
8
42%
Hold
3
25%
Hold
0
0%
Hold
1
20%
Hold
6
14%
Under review
0
0%
Under review
2
20%
Under review
4
5%
Under review
0
0%
Under review
2
17%
Under review
8
9%
Under review
33
30%
Under review
1
5%
Under review
0
0%
Under review
0
0%
Under review
2
40%
Under review
21
47%
 
3
 
 
10
 
 
84
 
 
28
 
 
12
 
 
89
 
 
110
 
 
19
 
 
12
 
 
10
 
 
5
 
 
44
 
Investment Rating Distribution for IB clients
Buy
0
0%
Buy
0
0%
Buy
0
0%
Buy
0
0%
Buy
0
0%
Buy
0
0%
Buy
0
0%
Buy
0
0%
Buy
0
0%
Buy
0
0%
Buy
0
0%
Buy
0
0%
Sell
0
0%
Sell
0
0%
Sell
0
0%
Sell
0
0%
Sell
0
0%
Sell
0
0%
Sell
0
0%
Sell
0
0%
Sell
0
0%
Sell
0
0%
Sell
0
0%
Sell
0
0%
Hold
0
0%
Hold
0
0%
Hold
0
0%
Hold
0
0%
Hold
0
0%
Hold
0
0%
Hold
0
0%
Hold
0
0%
Hold
0
0%
Hold
0
0%
Hold
0
0%
Hold
0
0%
Under review
0
0%
Under review
0
0%
Under review
0
0%
Under review
0
0%
Under review
0
0%
Under review
0
0%
Under review
0
0%
Under review
0
0%
Under review
0
0%
Under review
0
0%
Under review
0
0%
Under review
0
0%
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 

The Investment Rating Distribution tables above account for the recommendations on all instruments covered, rather than the number of companies covered. In instances where we provide a recommendation for more than one instrument issued by a company, these are counted separately.

Conflicts Disclosures and Equity Research Historical Ratings

Please search by the instrument name or ticker. Then select the instrument to see the information relevant to it

 

To view all investment recommendations issued by BCS Prime Brokerage Limited or its affiliates (including short term/sales and trading investment recommendations) by author, issuer or security http://www.bcsgm.com/en/investment-recommendations/.