Citigroup announced on Tuesday that it is broadening its research coverage to include private companies, with a particular focus on fast-growing technology firms. This move aligns with a similar strategy by JPMorgan Chase, which has reportedly begun providing research on non-listed companies. The expansion will target around 100 of the most influential private firms, especially in key sectors like artificial intelligence, offering analysis on events such as product launches, customer acquisitions, and new business developments.
The bank clarified that its reports will not include traditional investment recommendations, such as price targets, buy/sell ratings, or earnings forecasts. Instead, the coverage aims to provide insights into the growth and strategic moves of these private companies. This approach reflects the increasing significance of private firms in the global market, even as they remain outside the public trading sphere.
The shift comes as major private companies like OpenAI, SpaceX, and TikTok-parent Bytedance achieve valuations that rival or exceed those of many S&P 500 firms. This trend has blurred the lines between public and private market influence, prompting financial institutions to adapt their research offerings. Investors are increasingly seeking information on these high-value private players, which often operate in cutting-edge industries.
JPMorgan Chase has also been actively covering private companies, particularly those with high valuations or delayed IPO plans, according to a source familiar with the matter. As private firms continue to play a pivotal role in the economy, major banks are stepping up their research efforts to meet growing investor demand for insights into this dynamic segment of the market.