Investment companies: HSBC prefers Eurazeo, cuts FFP, GBL

Peugeot Invest SA

27/01/2020 08:41

** HSBC says Eurazeo  EURA.PA  is its favourite play in the
investment company sector amid an increasingly challenging
environment in which competition from private equity firms is
growing
    ** It keeps Eurazeo at "buy", saying that alternative asset
managers tend to perform better than other listed investment
companies
    ** It also cites the company's move to gradually adopt the
business model of large private equity firms and develop
third-party asset management
    ** It cuts FFP  FFPP.PA  to "hold" from "buy" and GBL
 GBL.N  to "reduce" from "hold" while keeping a "hold" rating on
Electra  ELTA.L , Investor  INVEb.ST  and Wendel  MWDP.PA 
    ** It says that FFP may have to reinforce its stake in
Peugeot SA/FCA, which would greatly reduce its diversification
    ** On GBL it says the stock remains a very safe investment
thanks to company's conservative investment strategy but that it
sees better value elsewhere in the short term
     

 ((marta.frackowiak@thomsonreuters.com))