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Sunday, December 5, 2021

Stock market up and down: from Enel to Diasorin the titles to play in defense

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Volatility is fought with resilience. After a 13-week rally, the markets suffered a first major setback with losses ranging between 3 and 6%. Despite the first encouraging macroeconomic data, especially from the USA, uncertainty about the end of the pandemic and the impacts it will have on the real economy remains high. Investors, after riding the euphoria of the end of lockdownthey could therefore try to capitalize on gains or lower losses, moving their gaze towards the more defensive sectors, waiting for the situation to be clearer.

In this context, they could come back into fashion utilities, health and food. Low growth sectors, but more protected from the effects of pandemics, with the icing of the dividend cake: which will continue to be paid and with generous returns in a zero interest rate market environment.

The opportunities

Business Square full of defensive opportunities, The Economy of the Corriere della Sera he thus wanted to review the companies on which the spotlight could soon rekindle. The results are shown in the table above. The patrol includes Diasorin, a company active in the production of machines for diagnostic tests, among the most successful stock market cases since the start of the pandemic. The stock has gained 46% since the beginning of the year, which rises to 62% on an annual basis. A result that, in the short term, could lead to profit taking. Kempen convinced that he cut the judgment on Friday Neutral to sell setting a target price at 127 euros. Analysts say that the Sars-CoV-2 immunological test market has now turned into a generic large-volume market which consequently favors large producers and the fall in the sales prices of serological tests. Kempen also highlights how the core business of the company was adversely affected by blockages and reduced hospital activity. Bloomberg consensus appears fairly aligned by registering 1 Buy, 6 Neutral, 4 sell with an average target of 152.77 euros.

Regulated sectors

But the most numerous patrol in the list of resilient titles is that of utilities or local utilities companies or companies operating in sectors regulated by the state. the case of Terna and Snam. The first has moved to positive territory since the beginning of the year, returning to the historical highs marked at the beginning of 2020, while the list of blue chips in the same period it leaves 15% on the ground. The company has recently appointed new managers: the board of directors chaired by Valentina Bosetti, has appointed Stefano Antonio Donnarumma, managing director and general manager, coming from Acea. On 11 June Bernstein raised the target price on Terna from 6.8 to 7.5 euros, confirming the recommendation outperform (do better than the market, editor’s note). For analyzes: the impact of the global crisis from Covid-19 will be of little consequence on the stock, since a 10% drop in demand is estimated to have an effect on profits of less than 1%. In April 2020 the demand for electricity in Italy decreased by 17.2% compared to the same month in 2019. But already from the month of May there should be a slowdown in the decline. The business Tern for Bernstein continues to be very solid and in the best scenario the title could be worth 9.5 euros.

Interest in utilities not tied only to market positioning and fundamentals. For some weeks now theappeal speculative. In fact, Hera recently purchased 2% of Ascopiave from A2A. The latter had entered the capital of Ascopiave just as Hera had started a collaboration with the company. A move that had been viewed as hostile. But since the change of the board of directors of A2A took place, the prospect seems to have changed with the new CEO Mazzoncini and President Patuano. There multiutility Milanese is preparing a new industrial plan which will be ready in the autumn. Among the expected objectives is the continuation of the growth policy by external lines but a potential combination could be with Iren. Finally, among resilient stocks, Enel should continue to show off, up more than 6% since the beginning of the year. Banca Akros has confirmed the rating a few days ago Buy after the company was first included in the Msci Esg Leaders Indexes following the annual review of the sustainability indices conducted by MSCI, leader in the research sector and the indices on environmental, social and governance (ESG) issues. The experts also confirmed the target price at 8.5 euros.


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