CRITICAL REVIEW OF ANALYST'S REPORT

Critical review of analyst's report

Critical review of analyst's report

Introduction

An analysis report which is also known as recommendation report is prepared to solve a problem or research area with solution, evaluation and recommendations to that objective. The reader of the report takes decision based on bulk data analysis that is presented in the report. In addition to this, report length is based on its type and depth of analysis that is carried in the report. In any report the part that are included for a good report consists of; background/introduction, problems, limitations, conclusion and recommendations (Epstein, 2009, pp. 270-275). The analytical report selected for critical review is based on Microsoft (MSFT) prepared by citigroup analyst dated November 1, 2005.

Discussion

As discussed in introduction an analysis report is prepared to solve a problem or includes an area that is required to be researched, and analysis report comprises of evaluation, solution and recommendations on the objective of the report. This paper reflects a critical review on analysis report (Niskanen, 2007, pp. 101-103). The report selected for this purpose is prepared on Microsoft (MSFT) which is prepared by Tom Berquist who is an analyst of citigroup and this report was prepared on November 1, 2005. There are various components that make an analyst report good. Main components that are considered to be in an analyst report are; introduction or background, problem, limitation, conclusion and recommendation. This report will be review in keeping view of all the things that are considered to be in a good analyst report. The report begins with the summary of the report in which main analysis and events are discussed. There are three points that are discussed in the summary. First three points consists of strategies that are adopted by the business to grow in the market and last part is the recommendation part in which it recommended to buy stocks of Microsoft with medium risk evaluated.

The next area of the report is comprises of analysis of various ratios. Below is the figure that is presented in report:

There are four sections of above table. Section fundamental is referred to basics of the business. There are various ratios that are calculated in this section and expected revenue is also mentioned in the table. In section share data price of shares is mentioned and one year range price is also mentioned with outstanding shares and dividend is also analysed. Earnings per share section comprises of projections of EPS on quarterly basis and yearly basis. In last section which is recommendations section current and previous rating is presented with current and previous target price of shares. Expected share price return is also mentioned in recommendations expected dividend yield and expected total return. Overall the table provides clear picture for investment decision in Microsoft Corporation with variety of tools.

Next section in the report comprises of opinion of analyst on strategies that are adopted by Microsoft. In this section analyst reviewed the strategy of Microsoft ...