European capital goods: Berenberg looks at value stocks in post-pandemic recovery
24/11/2020 08:43
** Berenberg says capital goods market are due a catch-up as
the possibility emerges for post-pandemic growth acceleration,
driven by potentially permanent cost reductions, China,
automotive recovery, as well as electrification and automation
** Q3 showed that electrification and automation trends are
set to drive above average growth for many years to come, the
broker says
** Berenberg adds the auto sector has shown steady recovery
since May, mainly driven by growing production volumes, although
structural challenges from the shift to electric vehicles remain
** "The strength of the Chinese economy has exceeded
expectations, which has unquestionably been good news for the
sector," Berenberg says, expecting the boost to continue in the
short term but warns of a possible mid-term slowdown
** The broker adds companies will also have to find ways of
making their temporary cost savings more permanent
** Berenberg's top investment ideas - all rated "buy" - are:
Sandvik SAND.ST thanks to its exposure auto and aerospace
end-markets, Rexel RXL.PA , set to benefit from growing
electrical equipment demand, Inficon IFCN.S due to its
underappreciated growth potential, and attractively valued Norma
NOEJ.DE
((milla.nissi@tr.com))