Bernstein names several European companies as top picks, including four with potential upside of more than 50%. The stocks span industries ranging from recreational vehicle manufacturing to semiconductor production, reflecting Bernstein’s confidence in various market segments in Europe. Bernstein believes the decline in this particular European equity sector appears to have bottomed out. Bernstein analysts led by Aleksander Peterc said: “For more than 10 years, MSCI small-cap stocks have consistently outperformed large-cap stocks, peaking in September 2021 and significantly underperforming in the following two years, with a trough of -30% “Over the past year, small-cap stocks appear to have bottomed out (or at least stabilized) relative to large-cap stocks. “Durr Bernstein selected German engineering company Dürr because of its good growth prospects and reasonable share price. The company provides automation and energy efficiency services and is expected to benefit from a variety of industry trends, including The investment bank said Dürr’s poor stock market performance this year, despite solid growth, was another reason for its choice. The biggest gainer among Stan’s favorite stocks, at €38 ($41), up 80% over the next 12 months, is Ipsos, a market research company that makes the list as it forecasts 2025. There will be a recovery in the U.S. market from 2019 to 2023. Bernstein also emphasized that the stock is attractive as its profit margin improves from 10% in 2019 to 13% in 2023. Bernstein analysts. “Although Ipsos is affected by macroeconomic weakness, we believe its operations should be resilient, allowing the group to maintain operating margins around 13% while generating stable (free cash flow),” said the investment. Shares are expected to rise to 79 euros, or 68%, over the next 12 months, the bank said. The French semiconductor maker is one of the most technologically advanced companies on Bernstein’s stock list, which the bank called “potentially attractive.” A compelling story about artificial intelligence.” The investment bank believes that Soitec’s Photonics-SOI products (semiconductors that transmit data at high speeds) currently account for only a small portion of the company’s total revenue, and says that “significant annual growth as demand grows” of up to 40% for high-bandwidth data centers Optical interconnects are growing in tandem with high-performance AI/ML clusters used in (AI model) training. Bernstein said Soitec’s share price is expected to rise 65% to 130 euros per share. Bernstein said French RV maker Trigano stood out because of its superior cash generation capabilities. “Producing recreational vehicles does not require any significant investment by Trigano,” Bernstein analysts noted, highlighting the company’s strong financial position, with around €300 million in net cash as of August 2023. , to 119.40 euros. —CNBC’s Michael Bloom contributed reporting.
Bernstein lists Europe’s best stock picks, 4 of which have upside potential of more than 50% | Real Time Headlines
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