(ABM FN-Dow Jones) Degroof Petercam has adjusted its list of favorite stocks for 2022 with a mix of cyclical and defensive stocks to deal with the uncertainty. This was revealed on Tuesday from a report from the investment bank.
Going forward, according to Degroof, interest rates will be the main uncertainty.
In addition, the investment bank’s analysts have no doubts that inflation will remain high this year as well, as a significant portion of the higher costs still need to be passed on across the supply chain. This would make companies that can set their own prices an attractive investment.
“However, an extended period of inflation is also gradually being felt in bond markets with 10-year European bond yields close to leaving negative territory. Rising interest rates could once again cause a bumpy ride, especially for high-yield equities,” the investment bank said.
In order to counteract the ongoing uncertainty, Degroof Petercam has therefore selected a mix of cyclical and more defensive stocks for the favorites list.
Favorites
Bekaert, Fagron, Greenyard, Kinepolis, TKH Group, VGP are added to the list, where AB InBev, ASML, Deceuninck and Just Eat Takeaway are added.
According to analyst Fernand de Boer, AB InBev has made good progress, beating analyst expectations for the last five quarters. The analyst expects AB InBev to continue to grow and the market.
ASML is one of the winners of the corona crisis, according to analyst Michael Roeg, as digitization continued. According to the analyst, the chip shortage will ensure that companies such as ASML will record strong profits and turnover in the coming years.
Analyst Frank Claassen believes that the structural improvements at Bekaert are now starting to show, with an impressive increase in REBIT margin since 2019. Furthermore, Bekaert also benefits from a strong free cash flow that gives room to make acquisitions, or to support shareholders. to be able to reimburse.
According to analyst Kris Kippers, Deceuninck’s underlying value is not reflected in the current share price, while the company has strong underlying demand in the United States and Europe. Kippers also emphasized the company’s strong cash flow.
Claassen writes about Fagron that the price drop of almost 30 percent in 2021 will provide 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 improved its operational and financial quality in recent years. According to the analyst, this is reflected in the fact that Greenyard has maintained its outlook for the entire financial year, while costs have increased.
Just Eat Takeaway went through a full “reset” in 2021, according to Roeg, causing the stock to perform poorly. The reset also meant less risk, the analyst believes. Roeg thinks that some rays of the sun are visible to boost confidence.
According to Kippers, Kinepolis entered the health crisis well armed and will emerge stronger.
According to Roeg, TKH Group has made a strong recovery in 2021, which should continue this year. The analyst is counting on a further improvement in operating margins.
VGP is in a perfect position to benefit from booming demand, said analyst Vivien Maquet. 2021 was a record year for VGP, and this should continue this year, the analyst expects.
Stocks to Avoid
According to Degroof, investors should rather 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.
–
