Among the top 20 performers of 2023, 16 have outperformed the main index (+18%)
Italian SME Cyberoo, specializing in cybersecurity, has grown by +55% since January
There’s Cyberoo, an Italian small and medium-sized enterprise specializing in cybersecurity, which has grown by +55% since the start of the year (also outperforming the Ftse Mib at +18%). Then there’s Buzzi-Unicem, a group based in Casale Monferrato, Piedmont, focused on cement, concrete, and natural aggregates production (+52%). And also Txt E-Solutions, an international player in digital solutions, which has delivered a performance of +41%. In total, 20 mid and small-cap companies, analyzed by the research team at Intermonte, stand out within what analysts describe as a “fragile” overall picture, not only due to recent macroeconomic concerns triggered by the real estate crisis in China but also because so far “liquidity invested in medium and low-capitalization stocks has continued to decrease.” However, according to expectations, this trend could soon reverse.
But let’s proceed step by step. Among the top 20 performers of 2023, 16 have outperformed the main index. In addition to the aforementioned Cyberoo, Buzzi-Unicem, and Txt E-Solutions, other notable mentions include Salcef Group (+39%), The Italian Sea Group (+36%), Cementir (+34%), Bff Bank (+30%), Reevo (+28%), Tod’s (+25%), Piaggio (+23%), Brembo (+22%), Iren (+22%), Webuild (+22%), Saes Getters (+21%), Banca Ifis (+21%), and Media for Europe (+20%). On the other hand, the list of worst-performing stocks since the beginning of the year is led by Aquafil (involved in circular economy and sustainable development) with a decline of -45%, followed by Dovalue (specializing in credit and distressed asset portfolio management) at -37%, and Safilo (a key player in eyewear production and distribution) at -35%.
Listed SMEs: Top (and Flop) of the Last Month
Looking at the top and worst performers of the last month, global production company Ilbe – with a market capitalization of 23 million euros – has achieved the best performance, rising by +15%. Also on the podium are De’ Longhi with +13% and once again Buzzi-Unicem with +12%. In this case, all 20 analyzed stocks have outperformed the main index. The Italian stock market (as of August 21, 2023) has actually declined by 2.9% in the same period. For the Ftse Italy Mid-Cap index, there’s a decrease of -2.3%, while the Ftse Italy Small Caps index has risen by +0.3%, recording a performance 3.2% above the market. Returning to individual stocks, Safilo (-15%), Wiit (-12%), and Reply (-11%) have suffered the poorest performances.
“Thus far, the published semi-annual results have provided overall positive indications, and the main surprises have come, in terms of our mid-small cap coverage, from the cement and financial sectors, more than compensating for some disappointments in earnings, especially among small caps,” comments the research team of the independent investment bank. “However, the overall picture remains fragile not only due to recent macroeconomic concerns triggered by the real estate crisis in China but also because, thus far, liquidity invested in medium and low-capitalization stocks has continued to decrease. As far as we know, the prolonged weak performance of some high-quality stocks (for example, certain digital sector companies) is more likely tied to fund managers reducing their overexposure to balance risk in their portfolios rather than concerns about corporate earnings estimates.” They then provide reassurance: “Although predicting the timing is difficult, we are confident that this trend will reverse in light of the attractive valuations of many quality stocks (particularly in the digital sector) that have become highly appealing.”
