Equity research analyst is about to issue a report changing a recommendation on a stock. Analyst is an important analyst whose recommendation would / could affect the price and trading of the stock. Is the analyst’s firm permitted to distribute the report to clients in advance of / before any broader public disclosure regarding the recommendation?
Yes
Look at this thread as well: http://www.analystforum.com/forums/cfa-forums/cfa-level-ii-forum/91317070.