Tres valores medianos para aprovechar sus catalizadores

Three median values are highlighted in order to take advantage of the current catalysts. European mid-cap companies are seeing favorable conditions, as their valuations are more attractive compared to large-cap stocks, despite recent strong performances by the largest companies. The recent rally in major stocks pushing variable income to all-time highs has sparked debate on their sustainability.

LFDE, a French manager, notes that European small and mid-cap companies are entering a clearly more favorable phase after years of poor performance relative to large-cap stocks. Several catalysts are emerging simultaneously to support this segment's long-term recovery, including the return of mergers and acquisitions. This historical phase creates support for smaller-cap stocks by offering acquisition premiums and serving as a benchmark for valuation of comparable listed companies.

For example, the acquisitions of DCC by KKR and ECP, Intertek by EQT, Adevinta by Permira and Blackstone, and Beazly by Zurich Insurance are cited as positive signs. Similarly, the reopening of the primary market is reinforcing the cycle of this segment. LFDE observes that European primary markets are also signaling improvement after difficult years, with several initial public offerings (IPOs) receiving positive investor reception, such as Vincorion, Electrovac, Asta Energy, and NOBA Bank.

The relatively attractive valuation of European mid-cap stocks, despite improved perspectives, is highlighted by LFDE analysts. European mid-cap stocks are currently trading at a discount compared to large-cap stocks, but their future earnings prospects appear more favorable. Additionally, mid-cap companies are well-positioned for European strategic priorities, particularly in sectors likely to benefit from large-scale public investment programs: defense, infrastructure, energy efficiency, logistics, cybersecurity, electrification, and data centers.

LFDE identifies three attractive median values for investment: Renk, a global leader in transmissions for military vehicles, which has seen a 140% increase in value in less than three years and is valued at over 7 billion euros; Secunet, a German specialist in cybersecurity and digital sovereignty, with a 175% increase in value over two years and a capitalization nearing 1.4 billion euros; and Bilfinger, a prominent actor in industrial services and infrastructure optimization, which has increased 60% in value over less than two years, with potential for further growth based on market consensus.