GS picks defensive tech hardware stocks amid weaker macro backdrop in 2023

Stillfront AB (publ)

11/01/2023 09:49

** Goldman Sachs highlights defensive stocks in the 
European technology hardware sector ahead of a tightening macro
backdrop in 2023 
    ** The broker prefers Dutch chip equipment maker ASML
 ASML.AS , German peer Infineon  IFXGn.DE  and Finnish network
equipment maker Nokia  NOKIA.HE , citing "stronger near term
positive catalysts and/or attractive valuations"
    ** It points to ASML and Infineon exposure to extreme
ultraviolet lithography (EUV) and silicon carbide (SiC)
technologies, for which it sees inflections this year
    ** It expects several pivotal areas - including EUV and
atomic layer deposition (ALD) technology - to provide "powerful
tailwinds" for companies that act as digital enablers, leaving
scope for upside to consensus for their mid-term earnings and
"outsized" sales/profit growth in the longer term
    ** It downgrades STMicroelectronics  STM.PA   STM.MI  to
"sell" from "neutral" and video game maker Stillfront  SFRG.ST 
to "neutral" from "buy" on high discretionary consumer exposure 
        ** Stillfront is down 4.9%, while both Milan-listed and
Paris-listed shares in STMicroelectronics  STM.MI   STM.PA 
slide 0.7%
  
 (Reporting by Alessandro Parodi)
 ((alessandro.parodi@thomsonreuters.com))