This study examines responses of 104 sell-side and buy-side security analysts to a survey sent out in order to understand how analysts conduct investment recommendations. Uncertainty about the quality of analysts’ investment recommendations is a major concern for retail investors. Specifically, the information gathering, processing and transferring process appears to be a black box for retail investors. The findings of our study provide insight into analyst-specific characteristics and sources of information used by analysts to undertake firm-specific research. By examining the practitioners’ responses we derive key factors which influence investment recommendations.