skills/initiating-coverage/references/report-architecture.md

# Report Architecture

A strong initiation report should feel like an argument, not a fact book.

## Standalone HTML Long-Only Initiation Report

For the normal user-facing HTML deliverable, create a polished standalone report rather than a standardized dashboard. The opening viewport should show one research posture, the central debate, what must be true for ownership, the valuation or capital-return gate, and the most important evidence limitation. Do not repeat the same posture through a hero banner, summary tile, PM answer, and decision box.

When capital intensity or financing risk is part of the thesis, place a `Capital Return And Funding Gate` near the top of the report. Summarize capex, pro forma debt and lease obligations, prospective dilution, interest burden, the after-financing return or cash-conversion proof available, and what is still missing from the model. If those items cannot support a target price or positive ownership conclusion, label the document `Preliminary initiation underwrite` or `Watchlist initiation` and state the work required to complete coverage.

## Default section order

1. Cover / summary box
2. MD or PM-level answer
3. Thesis and recommendation
4. Key debates and variant perception
5. Company overview
6. Industry structure and competitive position
7. Financial model and forecast drivers
8. Valuation and target price
9. Catalysts and timeline
10. Risks and disconfirming evidence
11. Scenario analysis and sensitivity
12. Appendix and source register

## Cover / summary box

Include:
- company / ticker / exchange,
- sector / subsector,
- date and data cut-off,
- rating or view if requested,
- target price or target range if requested,
- current price / market cap / enterprise value when available,
- current market-data as-of time and any explicitly missing valuation inputs,
- 12-month return implied by target price,
- evidence confidence,
- underwriting status, stated separately from evidence confidence,
- primary valuation methodology.

## MD / PM-level answer

One paragraph only. It should answer:
- what should the reader believe or do,
- why now,
- what the market is missing,
- what valuation says,
- what would change the view.

## Thesis section

Use 3-5 thesis pillars. Each pillar needs:
- title,
- supporting evidence,
- model/valuation consequence,
- counterargument,
- signal to monitor.

Bad: "large TAM and strong management."
Good: "enterprise mix shift can drive 300 bps of gross margin expansion if renewal cohort NRR holds above 115%, but the thesis breaks if new logo CAC payback remains above 30 months."

## Key debates and variant perception

For each debate:
- consensus view,
- our view,
- evidence,
- why the market may be wrong,
- next event that resolves or reframes the debate.

## Company and industry overview

Keep concise. Only include business description that supports the investment debate.

Required:
- revenue model,
- customer / end-market mix,
- cost structure,
- margin structure,
- competitive position,
- cyclicality/regulation/technology exposure,
- management or capital allocation points if material.

## Model and forecast drivers

Required:
- historical baseline,
- consensus bridge,
- forecast assumptions,
- model sensitivities,
- driver link to valuation.

## Valuation and target price

Required:
- primary method and why it fits,
- backup method,
- target price calculation,
- implied multiple or valuation bridge,
- sensitivity table,
- upside/downside cases,
- limitations.

For externally financed or capital-intensive growth, a revenue multiple cannot replace the capital-return and funding gate. Present an equity-value-to-revenue multiple as preliminary market context only until the fully diluted capitalization, enterprise-value bridge, financing burden, and after-financing returns are supportable.

## Catalysts

Separate:
- hard-dated events,
- recurring events,
- soft catalysts,
- thesis milestones,
- regulatory/legal/policy events,
- estimate revision catalysts.

## Risks and disconfirming evidence

Do not use generic risk boilerplate. Include:
- risk description,
- why it matters to thesis,
- leading indicator,
- downside impact,
- mitigation or monitoring plan.

## Appendix

Include only items that support the report:
- model assumptions,
- peer set,
- valuation tables,
- source register,
- data caveats,
- glossary,
- disclosure placeholders.