The broker’s analysts have identified nine French SMEs to put in the portfolio. Price targets exceed 50% for certain values.
Portzamparc’s analyst team, which specializes in small and mid-caps, has presented its conviction list for the first half of 2023 to investors.
The co-head of the office, Maxence Dhoury, was the first to recall the underperformance in 2022 of French SMEs, for the fourth time in five years.
An anomalous development that can be explained by the absence of passive management (ETF) in this segment of the List and with outflows in specialized funds (-3 billion euros for 161 funds since January 2021).
Earnings forecasts remain supportive as consensus awaits for companies in the Medium and small CAC an average increase of 7.2% in 2022 and 9.4% in 2023.
Profits of some rare companies are expected to drop by more than 25%: Metal backgammon, Eramet, Aperam, Tuax, Imerys, SFPI group. The consensus forecasts an increase in profits of more than 25% for forty listed SMEs.
Portzamparc’s favorite stocks
For the first half of 2023, Portzamparc analysts have shortlisted nine stocks:
GT extension with an indicative price of 130 euros.
The recent drop in price is explained by the sale of shares deriving from convertible bonds carried by Engie. But the qualities of the group are intact: monopoly, growth of LNG, growth driver.
Dry environment aiming at 101.60 euros.
Inflation is passed on to customers, the business is diversified and resilient. Growth is expected to be between 5% and 7% annually, thanks to the development of services.
Exail Technologies (formerly Groupe Gorgé) with a target of 25.90 euros.
The group has strong positions in inertial units and distress signals, anti-mine drones, photonics, underwater robots. The disposal of non-strategic assets reduces the holding discount.
Alpine Company aiming for a course of 21 euros.
Reservations in ski areas are well oriented and attendance at amusement parks is maximum. Valuation looks moderate at less than 7 times projected profits in 2023.
alfen aiming at a price of 143 euros.
The Dutch company is booming in transformer stations for power grids and charging stations for electric vehicles. The group’s European market share in charging stations from 7% in 2022 is expected to rise to 10% in 2023 and 12% in 2024.
Lisa with a target of 29 euros.
The fastener specialist does half of its business in aeronautics, which is in full recovery, and the rest in the automotive industry. The lightly leveraged company is focused on cash generation and is attractively valued.
Identity logistics with a target of 400 euros.
Organic growth exceeds 8% per year. Trade momentum is accelerating in the US. Infotel targeting 63.10 euros. The business is very resilient and the valuation is reasonable. The balance sheet is solid with positive net liquidity.
2Crsi with a target of 4.30 euros.
The apparently excessive debt is expected to decrease significantly. The value of the shares is worth almost twice the market capitalization.