Eight French companies to gain 42% amid political storm
Analysts at UBS and JPMorgan believe that the market overreacted to the situation in France.
bargain hunter investors They begin to maneuver in the French markets, considering opportunities for buying stocks and bonds punished after calling for early legislative elections Emmanuel Macron.
“Markets are usually overreaction to political risksand this may be a different case,” says Jerry Fowlerstock market strategist
bargain hunter investors They begin to maneuver in the French markets, considering opportunities for buying stocks and bonds punished after calling for early legislative elections Emmanuel Macron.
“Markets are usually overreaction to political risksand this may be a different case,” says Jerry Fowlerstock market strategist YBS.
In accordance with Matthew Baileycredit analyst J.P. Morgan“Although there are many risks, the situation in France represents a buying opportunity. Syriza in Greece, M5S in Italy or Liz Truss in the UK.: with populist rhetoric limited in managing the reality of bond markets and the European financial system.”
According to Jonathan Stubbs, BerenbergIt may not be time to take big risks yet, but “there is Paris stock exchange securities that can withstand the political storm or which currently offer a good opportunity.
For bargain hunters, UBS recommends the eight French listed companies that fell the most last week as the Swiss bank’s analysts say they could offer yield 42% from current levels. Near Société Générale, Engie, Vinci, Edenred, AXA, Kering, Orange and Compagnie de Saint Gobain. Some of these groups have significant investments in Spain.
According to UBS, the 15 stocks on the French stock market that have been punished the most since last week now represent PER 10x and dividend yield 5.2%.“very attractive indicators in anticipation of an improvement in the economic situation in Europe and lower rates.”
Berenberg Bank, for its part, sees progress in AXA, BNP Paribas, Imerys, Interparfums, Ipsos, Sanofi and TotalEnergies. For those who prefer to avoid France altogether, this bank offers bags from Spain and Italybeing cheap compared to French parquet.