Goodbye giants, large investors are focusing on Mid-Caps: the companies ready to receive the baton from the banks
Goodbye “giants”, welcome Mid-Cap. Italian mid-cap companies are looking for redemption and are ready to receive the baton from the banks in the Piazza Affari rally. The context may once again become favorable for many stocks that were underestimated until now and the confirmation of a possible change of pace for liquidity on the market also comes from the 13th edition of the Italian Investment Conference, organized by UniCredit in collaboration with Kepler Cheuvreux with the aim of putting comparing investors and top management of listed companies.
He tells it The sun 24 hours. 63 companies (60% of the capitalization of Piazza Affari) met with 158 investors: 1,300 meetings from which a renewed interest emerged, also on the part of foreign operators, for an Italian capital market that is preparing to welcome the regulatory changes and awaits the rate cut, and in general the second half of the year, as a watershed for a repositioning compared to the recent past. Attention, as mentioned, is especially high for mid-caps. “The Italian indices, as is known, are outperforming in Europe – explains Silvia Viviano, Group head of Equity capital markets at UniCredit -, but many companies with capitalization of less than 5 billion are still trading at a 15% discount on historical multiples. C ‘is a renewed optimism: top management largely confirmed the guidance; Furthermore, the issue of interest rates and debt seems to have disappeared and this may also favor M&A operations. The feeling of many investors is that the right moment to re-enter the market. These new flows could help the Italian index to maintain its current record levels, in a context in which banking seems destined to slow down. Looking ahead, we have recorded positive signals in particular for Consumer Goods, less so for Industrial, which is waiting for the second part of the year to exhaust destocking residues and start again with new orders”. It still seems early, however, for a clear signal which stops the flight of many SMEs from Piazza Affari, supported by private equity investments, and on the other hand fuels the IPO pipeline, which is currently dry.
“It will take time – continues Viviano – to evaluate the impact of the flows on real valuations. In the short term, we expect that buybacks can still continue: in Europe, even in the banking sector, we are not yet at the maximum valuation levels recorded on the US market” .
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