European small and mid-cap selection update: six new targets were selected, stock selection is the key (Bernstein)
Bernstein updated its preferred list of European small and medium-sized caps (SMID), adding 6 targets including Convader and Cyber Group, and replacing 6 targets.
Bernstein updated its preferred list of European small and medium-sized caps (SMID), adding 6 targets including Convader and Cyber Group, and replacing 6 targets. The new combination covers medical technology, consumer, semiconductor and other fields. Although Societe Generale's strategy team lowered the European SMID rating to neutral due to the weakening macro environment, Bernstein believes that the asset's fundamentals still have a relative valuation advantage and stronger profit growth expectations, emphasizing the need to adopt a strategy of selecting individual stocks in the future. The overall market sentiment towards European small and mid-caps may be cautious, but Bernstein's stock selection logic shows that there are a number of undervalued high-quality companies with clear catalysts. One-sentence conclusion: In the context of European small and mid-caps facing macro pressure, individual stock selection has become crucial. The targets selected by Bernstein are attractive in terms of valuation, earnings momentum and catalysts, providing investors with investment opportunities through the cycle. Positives/negatives: New targets on the positive list, such as Convader, Cyber Group, etc. Bernstein's pick strategy itself is a positive sign for these stocks. Catalysts: 1) The 2026 interim results of the stocks on the list verify their earnings growth momentum; 2) Each company's product launch or M&A progress, such as Cyber Group's new product launch.