GS sees M&A picking up among Europe's diversified financials in 2025
13/01/2025 10:38
** In a 2025 outlook note on Europe's diversified
financials, Goldman Sachs predicts growing convergence of public
and private markets, including through M&A and partnerships
** It expects rising cash flow optionality to boost M&A
among European exchanges, while transaction volumes at
alternative asset managers should further recover
** "We believe we remain in an expansionary phase of the
cycle for deal activity within private markets," says GS about
alternative managers
** Alternative managers remain discounted by historical
standards and have notably decoupled from their U.S. peers over
the past year, it adds
** It also sees gradual investor rotation back towards
higher-margin, higher-risk products through 2025, adding scope
for higher valuations
** GS upgrades Eurazeo EURA.PA to "buy" from "neutral",
citing its "significantly accelerating capital return potential"
** Eurazeo shares rise 2.4%, outperforming France's SBF 120
.SBF120 index which falls 0.8%
** GS favours EQT EQTAB.ST and Eurazeo, while noting LSEG
LSEG.L , Deutsche Boerse DB1Gn.DE and Euronext ENX.PA all
trade above their five-year historical averages
** It downgrades DWS DWSG.DE to "neutral" from "buy"
sayings its robust growth outlook is priced in the shares
(Reporting by Dimitri Rhodes)
((Dimitri.rhodes@thomsonreuters.com))