The buy side says: “Simon has great insight into the competitive dynamics for the companies he follows.”
Simon Flannery, who spent the past three years in second place, rises one rung to finish on top for the first time since this sector was created through the 2007 merger of Telecom Services/Wireless and Telecom Services/Wireline; the Morgan Stanley analyst led the latter sector for five years, from 2002 through 2006. “Simon has made numerous good calls,” says one investor, citing as example the analyst’s January reiteration of his overweight rating on Savvis, an information technology services provider headquartered in Town & Country, Missouri. “We saw an attractive valuation and the potential for improved revenue performance,” says Flannery, 48. In late April, after the stock had advanced 20.1 percent, from $15.42 to $18.52, and outpaced the sector by 25 percentage points, the analyst issued a valuation-based downgrade to neutral. By the end of August, the shares had slipped to $17.48.
