Why is it bad form to research a company and then decide based on your findings to invest in it? (I am an outsider to the world of finance and clearly I am failing to understand something)
Analysts are required to genuinely believe what they are saying, or at least aren't allowed to say one thing in public research reports, and another in private. Their research is considered Material Non-Public Information until it is published, and thus cannot share it with anyone in their firm that is outside the research department until they release it to the public.