Rates start reversing, but European small/mid-caps' valuations remain unchanged - Jefferies

flatexDEGIRO SE

03/09/2024 10:08

** Jefferies sees investment opportunities among European
small- and mid-cap stocks, citing valuations at record lows vs
large caps and a broad-based recovery that has not yet
materialised, while Eurozone rates have started to reverse
    ** It says volatility presents a good opportunity to buy
names exposed to attractive long-term structural growth markets
at a discount, highlighting Arcadis  ARDS.AS , Do&Co  DOCO.VI 
and Sixt  SIXG.DE 
    ** It cites Basler  BSLG.DE , Jenoptik  JENGn.DE , Siltronic
 WAFGn.DE , Fugro  FUGR.AS  and TKH Group  TWKNc.AS  as
"oversold cyclicals"
    ** Among rate cut beneficiaries, which should see earnings
tailwinds from falling rates, it puts Afry  AFRY.ST ,
Flatexdegiro  FTKn.DE  and Nordex  NDXG.DE  
    ** Jefferies favours Belimo  BEAN.S  and Munters  MTRS.ST 
as companies with unique opportunities from the rise of AI and
its boost to global data centre market over the next decade  
 COMPANY      NEW RATING  OLD RATING    PT          OLD PT
              BUY         -             SEK 270     -
 Afry                                               
                                                    
 Adesso       Hold        Buy           EUR 75      EUR 145
              Buy         Hold          EUR 24      EUR 19
 Azelis                                             
                                                    
 Draegerwerk  Hold        Underperform  EUR 47      EUR 42
              Buy         Hold          EUR 170     EUR 140
 IMCD                                               
                                                    
 Munters      Buy         Hold          SEK 260     SEK 260
              Hold        -             SEK 180     -
 Sweco                                              
                                                    
 Swedencare   Buy         Hold          SEK 64      SEK 64
 
 (Reporting by Alessandro Parodi)
 ((Alessandro.Parodi@thomsonreuters.com))