Mid-caps: Berenberg revises stocks to own in COVID-19 crisis

Fagron NV

28/05/2020 07:08

** Berenberg updates its list with mid-cap companies to own
during the COVID-19 crisis
    ** It says the original list was balanced between companies
with expected positive or limited financial impact from
COVID-19, and companies with a negative hit to numbers expected,
but considered that was in the price  urn:newsml:reuters.com:*:nL8N2BW1GN
    ** The new additions are biased towards companies where a
negative near-term impact could mask future opportunities,
through organic growth or value-accretive M&A, adds the
brokerage
    ** Berenberg adds Embracer  EMBRACb.ST  and Stillfront
 SFRG.ST  to the list, saying both should see a substantial
short-term financial boost
    ** It also includes Cancom  COKG.DE , Fagron  FAGRO.BR ,
Marel  MARL.IC  and Solutions 30  ALS30.PA , which could all see
opportunities in the more medium term, and "long-run team
favourite" Varta  VAR1.DE 
    ** On the other hand, it removes Softcat  SCTS.L  as its
share price now substantially reflects potential financial
benefits from the crisis and notes it thinks there are better
opportunities elsewhere
    ** It also drops Ultra Electronics  ULE.L  and Glanbia
 GL9.I  as it sees a negligible business model opportunity from
COVID-19, despite that the companies remain positive

 ((joanna.wodzicka@tr.com))