Skate’s is pleased to announce that Citibank, specifically the Citigroup Investment Research division, has recently launched investment coverage of Sotheby’s (NYSE:BID). This marks the first time that this leading financial institution has devoted specific coverage to Sotheby’s.
Citi’s coverage of Sotheby’s is welcome on several levels. First, it provides further acknowledgement of a reality that Skate’s has long espoused, i.e., that art and the securities of companies that provide art-related products and services afford institutional and individual investors with a viable alternative asset choice. Second, as the largest publicly-traded art industry company in the world, the high liquidity of Sotheby’s shares allows investors an excellent opportunity to invest in a leading participant in the art market without the costs and risks involved in actual art ownership.
Authored by Oliver Chen, CFA, and Kate McShane, CFA, Citi’s research on Sotheby’s—written according to top Wall Street standards—offers a refreshing and professional analysis of the auction house business model and its upside potential. Skate’s fully welcomes any research and analysis from major financial institutions focused on the art industry. Although we remain a bit more bullish about Sotheby’s, we find Citi’s analysis extremely interesting. Citi’s initiation of Sotheby’s coverage is a very healthy event for the global art industry.
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