Citi announces research expansion into private industry, mostly tech firms
The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. Picture taken October 19, 2017. REUTERS/Chris Helgren/File Photo
Citigroup said on Tuesday it is expanding its research coverage to include private companies, with a focus on rapidly growing tech firms, mirroring a similar strategy by JPMorgan Chase, which has reportedly begun covering non-listed firms.
The expansion will focus on about 100 of the most influential private companies, especially in key sectors like artificial intelligence, offering event-driven analysis on product launches, customer acquisitions and new business lines.
However, the reports will not include price targets, buy/sell recommendations, or earnings forecasts, the bank said.
This comes as several private companies, such as OpenAI, SpaceX and TikTok-parent Bytedance, command valuations that rival or surpass several major S&P 500 firms, blurring the distinction between public and private market influence.
JPMorgan Chase has also been offering research coverage for private companies, many of which have high valuations or are delaying listings, a person familiar with the matter told Reuters on Friday.
