The Ftse Italy Mid-Cap index has outperformed the main index by 1.3% in the last month (-0.1% on an annual basis)
Randone: “Our preferences go to stocks with high visibility on estimates and resilient business models, such as companies related to digital transformation.”
After a lackluster year, Italian small and medium-sized enterprises regain momentum on the stock exchange. The Ftse Italy Mid-Cap index (prices as of January 17, 2024) outperformed the main index by 1.3% in the last month, while the Ftse Italy Small Caps index returned a performance 1.6% higher than the market. And it doesn’t end here, according to the latest monthly report on Italian mid-small caps by Intermonte. On the contrary.
“Despite geopolitical tensions and the positive performance recorded by the markets in 2023, our view on the Italian market remains positive,” says Andrea Randone, head of mid-small cap research at the investment bank. “We expect quoted SMEs to regain momentum after the underperformance of 2023, generated by portfolio rotation (from growth stocks to value stocks) and redemptions of Pir funds. And we believe that within this segment, there are still stocks with excellent growth prospects and attractive valuations,” adds the analyst.
Mid-small Caps Ready to Restart: How to Invest
“In particular, our preferences go to stocks with high visibility on estimates and resilient business models, such as companies related to digital transformation, utilities, some industrials linked to long-term investment plans, and consumer with a strong positioning and good pricing power.” M&A operations, according to Randone, could also return to interest those stocks that generate abundant liquidity and are looking for growth opportunities, as well as companies that are possible targets for acquisitions or delisting.
The 20 Best (and worst) Stocks of the Last Month
Intermonte has identified the top 20 stocks of the last month, which have also outperformed the Ftse Mib. At the top of the podium is Omer, an internationally active operator in the design and production of railway components, with a performance of +17%. Alongside it, is Servizi Italia (active in integrated rental, washing, and sterilization of textile articles and surgical instruments) with +14% and Txt E-Solutions (an international player specializing in digital solutions) with +13%. On the opposite side, among the worst performers of the last month are Dovalue (dealing with the management of credit portfolios and real estate derived from impaired credits) down by 23 percentage points, Antares Vision (a company active in the quality control and traceability of products, recently qualified as an SME) with -19%, and the fashion house Ferragamo with -16%.
The 20 Best (and worst) Stocks Since the Beginning of the Year
Recording the best performances since the beginning of the year is once again Servizi Italia with +14%, followed by Ieg (a leader in trade fair events) with +11% and Omer with +10%. In the top 20, there are also Webuild (+7%), The Italian Sea Group (+7%), Mondadori (+7%), Buzzi-Unicem (+6%), Saras (+5%), Civitanavi Systems (+4%), Relatech (+4%), Unipolsai (+3%), Txt E-Solutions (+3%), Alkemy (+3%), Pharmanutra (+3%), Cyberoo (+3%), Credito Emiliano (+3%), Bp Sondrio (+2%), Elica (+2%), Saes Getters (+1%), and Reply (+1%). A different case for Antares Vision (-27%), Dovalue (-25%), and Seri Industrial (-15%), which position themselves among the “worst performers” year to date.
