At the top of the list of best performers since the beginning of the year is Buzzi-Unicem, which gained +54% compared to +28% for the FTSE MIB. Maire Tecnimont follows with +49%, and Cementir with +47%.
Randone (Intermonte): “Despite the rebound, technology stocks still seem interesting, along with some utilities and companies with a significant order backlog.”
Italian mid-cap companies continued on an upward trend in the last month. The FTSE Italy Mid-Cap index (as of December 15, 2023) rose by +4.8%, outperforming the main index by 1.6%. The FTSE Italy Small Caps index (+4.5%) recorded a performance 1.3% higher than the market. A rebound that “should continue into 2024,” says Andrea Randone, head of mid-small cap research at Intermonte. The independent investment bank, in its latest monthly report on Italian SMEs, identified 14 stocks that have outperformed the FTSE MIB since the beginning of the year, taking a look at sectors that could also drive the recovery of smaller listed companies.
At the top of the list of best performers since the beginning of the year is Buzzi-Unicem (an international company dedicated to the production and sale of cement, precast concrete, and natural aggregates), which gained +54% compared to +28% for Piazza Affari. Maire Tecnimont (active in the engineering, technology, and energy sector) follows with +49%, and Cementir (a multinational offering innovative solutions for construction in 70 countries) with +47%. Also outperforming the main index are The Italian Sea Group (+44%), Cyberoo (+44%), Iren (+43%), Saes Getters (+42%), Txt E-Solutions (+41%), Servizi Italia (+41%), De’ Longhi (+41%), Saras (+40%), Salcef Group (+38%), Webuild (+35%), and Bff Bank (+35%). On the opposite side, among the “worst performers” since the beginning of the year, we find Antares Vision (a provider of visual inspection systems and traceability solutions) with a -79%, followed by DoValue (operating in the management of credit portfolios and properties resulting from impaired loans) with -54%, and Aquafil (active in the production and distribution of polyamide 6) with -48%.
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Analyzing the data of the best SMEs listed on the stock exchange in the last month, Ovs Group stands out in the first place, recording a positive performance of +25%, accompanied by Acea with +23%, and Sciuker Frames with +22%. Among the worst performers, we once again find Antares Vision with -38%; further behind are Notorious Pictures with -9% and Banca Ifis with -7%.
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“In the last month, Italian mid-cap companies have continued on an upward trend, supported by the anticipation of rate cuts expected by the Federal Reserve in 2024,” explains Randone. “However, the European Central Bank has provided more cautious indications, and the significant issuances planned for the first quarter of 2024 suggest the likelihood of some ups and downs regarding the yield curve,” he warns. In Italy, the expert continues, the margin of maneuver on the budget law “seems limited, implying presumably an equally limited impact of political issues on the stock markets.” Regarding operational trends, according to Randone, the results of the third quarter of 2023 offered “relatively comforting” indications, emphasizing in many cases the fundamental attractiveness of various companies despite some disappointment among certain industrial and consumer companies suffering from the ongoing economic slowdown.
“In this scenario, we recommend increasing the weight of mid-cap stocks, especially those offering good cash generation,” suggests Randone. “Despite the rebound, technology stocks still seem interesting, along with some utilities and companies with a significant order backlog,” he adds. As recently stated to We Wealth, the same drivers that led to the underperformance of mid and small-caps in 2023 could drive their expected recovery in 2024. Primarily, interest rates, which according to the expert “should not rise anymore and at some point even decrease, bringing back growth stocks at the expense of value stocks.” Then, Individual Savings Plans, which “should hopefully regain positive inflows, also thanks to the recent legislative measure that allows an individual to hold more than one Pir.”
