(ABM FN-Dow Jones) Degroof Petercam has opted for a mix of cyclical and defensive stocks for its 2022 favorites list. This was revealed on Tuesday from a report from the investment bank.
According to Degroof, interest rates are the main source of uncertainty this year.
Furthermore, there is no doubt among the investment bank’s analysts that inflation will remain high this year, as a significant portion of the cost increases still need to be passed on to all parts of the supply chain. This makes companies that have price power an attractive investment, according to the analysts.
With all this uncertainty in mind, Degroof Petercam has selected a mix of cyclical and more defensive stocks.
Favorites
Bekaert, Fagron, Greenyard, Kinepolis, TKH Group, VGP are added to the list, which already included AB InBev, ASML, Deceuninck and Just Eat Takeaway.
According to analyst Fernand de Boer, AB InBev has made great progress, and the brewer has consistently beat analyst expectations over the past five quarters. The analyst is also positive about future growth.
ASML is one of the winners of the corona crisis, according to analyst Michael Roeg. According to the analyst, the global shortage of semiconductors will ensure that companies such as ASML continue to see sales and profits grow in the coming years.
Analyst Frank Claassen believes that the structural improvements at Bekaert are now starting to take effect, with an impressive improvement in the REBIT margin since 2019. Furthermore, Bekaert also has strong free cash flow, which offers room to make acquisitions, or to to reward shareholders.
According to analyst Kris Kippers, there is a lot of underlying value in Deceuninck, which has not yet been priced into the price. The company benefits from strong underlying demand in the United States and Europe. Kippers also emphasized Deceuninck’s strong cash flow.
Claassen writes about Fagron that the price drop of almost 30 percent in 2021 offers a good entry point. According to the analyst, the investor day in mid-March should confirm Fagron’s structural growth story.
De Boer further emphasized that Greenyard has made operational and financial progress in recent years. It is not without reason that Greenyard maintained its outlook for the entire financial year, despite rising costs.
According to Roeg, Just Eat Takeaway had a very hard time in 2021. However, this ‘reset’ also means that the risks have become smaller, according to the analyst. However, Just Eat takeaway will have to regain investor confidence.
According to Kippers, Kinepolis entered the corona crisis in good condition and will come out even stronger.
According to Roeg, TKH Group has made a strong recovery in 2021, which will be continued this year. The analyst expects a further margin improvement.
VGP is perfectly positioned to capitalize on strong demand for logistics real estate, said analyst Vivien Maquet. Last year was a record year for VGP, and this year the company will continue to build on this.
Stocks to Avoid
According to Degroof, investors should stay away from HAL Trust, IMCD, Adyen, Proximus and Vastned this year.
Bron: ABM Financial News
From Beursplein 5, the editors of ABM Financial News keep a close eye on developments on the stock exchanges, and the Amsterdam stock exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
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