The goal of the paper is to check whether analyst coverage of a firm relaxes its financial constraint. Using a data set that includes Small and Middle Enterprises (SME) from six European countries between 2000 and 2015, we check whether analyst following reduces the sensitivity of investment expenses to cash-flow. We show that firms with a large coverage are less sensitive to cash-flow. We also obtain that the favorable effect of coverage on investment sensitivity to cash-flow is stronger for low-capitalization firms. Our findings suggest that analyst coverage mitigates information asymmetries and relaxes firms' financial constraint, especially for SME.