Investor days allow companies to articulate their investment narrative and communicate their long-term strategies and financial targets to the capital markets. It is an important milestone that shapes the Street’s perception of the company as an investment opportunity.
While Investor Relations (IR) teams should always have a pulse on Wall Street’s views of their company, a formal perception audit can provide extremely valuable feedback to help shape the investor day agenda and content. Because it is conducted anonymously, participants may also be more candid in their assessment of the company’s weaknesses.
Here are the top 10 insights a perception audit can provide to ensure a successful investor day:
- Assess the Street’s current understanding of the company’s growth strategy
- Test the validity of the investment thesis
- Uncover disconnects with current messaging
- Identify priority topics for investors and analysts
- Determine speakers of interest
- Gauge appetite for an in-person event, including input on location and timing
- Assess value of experiential events (such as product demonstrations, tours of facilities, etc.)
- Solicit feedback on the level and type of operational and financial disclosures
- Evaluate the Street’s view on capital allocation strategy
- Analyze how the company stacks up against peers
Pre-investor day perception audits enable companies to pull together an event that is valuable to the Street – from the topics covered, to the speakers featured, to the inclusion of experiential elements. By proactively identifying gaps in the Street’s perceptions and understanding where analysts and investors are looking for more details, companies are better positioned to provide clarity and address any disconnects head-on – whether in investor day content or in disclosures leading up to the event.
Interested in conducting a pre-investor day audit or in learning more about Edelman Smithfield can support an upcoming investor day? Visit our website or contact us for more information.
—Stacy Turnof, EVP (Stacy.Turnof@edelmansmithfield.com) & Nicole Harlowe, SVP (Nicole.Harlowe@edelmasmithfield.com) Strategic Situations and Investor Relations, Edelman Smithfield