European Mid-Cap: Berenberg presents top picks to own in 2022
06/01/2022 09:19
** Despite uncertainty factors in 2022 such as supply chain
tensions, rises in inflation and the COVID-19 pandemic,
Berenberg selects its European mid-cap top picks for the year:
Barco BAR.BR , Beneteau CHBE.PA , ENCE ENC.MC , Esker
ALESK.PA , Fastned FASTN.AS , flatexDEGIRO FTKn.DE , rating
all six "buy"
** Belgian visual technology company Barco's long-term
outlook is more attractive than it was pre-pandemic, the broker
says
** French boat manufacturer Beneteau is on track to deliver
on its 2020 capital markets day (CMD) promises, which should
close the valuation gap with peers, it notes
** The broker expects ENCE will generate over 55% of its
market cap in free cash flow by the end of 2023 and it adds that
the strong free cash flow generation is misunderstood by the
market due to complicated energy regulations
** Berenberg sees Esker well placed to capture structural
growth in its markets, highlights the French software
developer's high quality and ability to accelerate growth
** It says that Dutch charging stations maker Fastned
represents an attractively levered pure-play on the
electrification of transport theme
** Online broker flatexDEGIRO is set to continue gaining
share across the largely underpenetrated markets in continental
Europe, it adds
** Among its "hidden gems", with a market capitalisation
below EUR 1 billion ($1.13 billion), are Ekopak EKOP.BR ,
Hydrogen Refueling Solutions ALHRS.PA , SECO IOT.MI , NX
Filtration NXFIL.AS , Italian Sea Group TISGR.MI and Xilam
Animation XIL.PA , which represent attractive opportunities for
those able to invest in lower-liquidity stocks with a long-term
holding horizon
($1 = 0.8853 euros)
(Reporting by Marta Frackowiak)
((marta.frackowiak@thomsonreuters.com))