Italian capital goods firms set to gain in 2021 - Exane

Technogym

02/02/2021 10:33

** Exane BNP Paribas says key themes in 2021 and beyond for
Italian capital goods companies will be the EU recovery fund,
green investments, M&A, raw materials, forex and plays late in
the economic cycle
    ** Brokerage sees Danieli  DANI.MI  and Maire Tecnimont
 MTCM.MI  (rating: "outperform") as best-positioned to benefit
from EU's recovery fund and further incentives for long-term
green projects, chooses the two companies as its top picks
    ** "The party isn't over for industrials - post-vaccine
growth may surprise to the upside," Exane adds
    ** Brokerage cuts Italy's Interpump  ITPG.MI  to "neutral"
from "outperform", saying valuation looks full as it trades at a
12% premium to the capital goods sector; adds M&A triggers in
2021 are unlikely
    ** Says Piaggio's  PIA.MI  valuation is more attractive than
ITPG's as growth in developing markets and China is still rapid,
despite likely weak sales in India in 2021
    ** Cuts brake maker Brembo  BRBI.MI  to "underperform" from
"neutral", citing full valuation, growing competition and raw
material pressure
    ** COVID-19 is taking a particularly severe toll on cruise
operators and consequently shipbuilder Fincantieri  FCT.MI  and
on gyms and hospitality too, affecting gym equipment maker
Technogym  TGYM.MI , Exane adds

 ((silvia.recchimuzzi@tr.com))