Barclays says tariffs open doors to stock picking; initiates De' Longhi, TechnoGym

Biomerieux SA

04/04/2025 12:55

** Barclays keeps a "neutral" view on European small- and mid-caps and initiates Italy's De' Longhi DLG.MI and TechnoGym TGYM.MI at a time when U.S. President Donald Trump's policies have created a "great stock-picking environment"

** It rates home appliance maker De' Longhi as "underweight" seeing a significant risk from U.S. tariffs, as it will not be able to offset all of them with pricing power

** The broker is also concerned that the company's net cash of 600 mln euros ($664 mln) will be spent in M&A

** The home appliances category is macro-sensitive, with direct tariff impact to be felt in highly competitive fields like coffee machines, Barclays adds

** It initiates fitness equipment maker TechnoGym at "equal-weight", saying attractive growth is fully priced in the shares

** It sees a limited tariff risk, as only 10% of TechnoGym's sales are to the U.S.

** Across the category, Barclays' top picks are D'Ieteren IETB.BR, Biomerieux BIOX.PA and SIG Group SIGNC.S, all resilient to tariff and macro shocks

($1 = 0.9038 euros)

 (Reporting by Tiago Brandao)

 ((Tiago.Brandao@thomsonreuters.com;))