What’s happened? Trigano released H1 FY21 (ending February) preliminary
results, with Q2 revenue slightly missing estimates. Revenue increased 7% in
Q2, decelerating from 29% in Q1 being affected by lockdowns in the U.K. and
the cyberattack. The stock is down 7% today and we might see selling pressure
in the short term. We recommend investors to hold positions and look for
support at its 50-DMA (€153.84). On the long term we remain positive that the
increase in production capacity and full order books will lead to a strong
rebound of sales in H2.
Author: Tristan d'Aboville
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The Stoxx 600 remains in a Confirmed Uptrend with six distribution days. It continues to trade constructively along its short-term moving averages and is 1% off highs. Last week, we shifted Luxembourg and Belgium to a Confirmed Uptrend after they reached new highs. Of the 17 indices that we cover, 12 are now in a Confirmed Uptrend.
- We added two stocks last week to our European Focus List: Interpump (IP.IT) and Flutter Entertainment (FLTR.GB). Actionable names on the Focus List include Sartorius (SRT3X.DE), Imcd Group (IMCD.NL), Trigano (TRI.FR), Sika (SIKA.CH), Schneider Electric (QT@F.FR), Teleperformance (ROFR.FR), DeLonghi (DLG.IT), and Dsv Panalpina (DSV.DK).
O’Neil Consumer/Retail Weekly
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The Stoxx 600 was upgraded to a Confirmed Uptrend last week after it reclaimed its prior high. The index is now trading 3% above its 50-DMA and 11% from its 200-DMA.
- The majority of markets are now in a Confirmed Uptrend (11 of 17 indices we cover). We shifted Germany, Ireland, Finland, Italy, and Spain to Confirmed Uptrend after reaching new highs. The average number of distribution days is 5.56, compared with 6.25 two weeks ago. We recommend that investors add stocks breaking out from proper bases on good volume.
- Over the past five days, we removed one stock from our Focus List: THG Group (THG.GB).
- Actionable names on the Focus List include Sika (SIKA.CH), Schneider Electric (QT@F.FR), Teleperformance (ROFR.FR), De Longhi (DLG.IT), and Dsv Panalpina (DSV.DK).
De Longhi
What’s happened? De Longhi closed 8.7% higher yesterday after giving a bullish
trend for 2021. The company posted its FY2020 full set of earnings (prelim
figures were already disclosed with 14% top line growth) including 180bps gross
margin and 200bps Ebitda margin expansion (+28% y/y) led by strong volumes
and positive price-mix.
DraftKings
DraftKings’ Investor Day brought to light the immense potential of the growing online sports betting and iGaming markets. DraftKings significantly increased its long-term revenue and EBITDA forecast, which in our view, is just the beginning of a long series of earnings upgrades. We recommend that investors hold positions as the stock’s technical characteristics continue to improve, with an RS line moving upward, an RS Rating of 91, and an A/D Rating of B-. In this report, we highlight the key takeaways from today’s Investor Day.
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The Stoxx 600 is in an Uptrend Under Pressure with six distributions days. The average number of distribution days in the region remains elevated at 5.6, versus 6.4 last week. We downgraded Finland, Italy, Belgium, the Netherlands, and Luxembourg to an Uptrend Under Pressure. Sweden was upgraded to a Confirmed Uptrend after it reached a new high. We maintain a near-term cautious approach given the high number of distribution days and extended nature of the index (8% above its 200-DMA).
- Over the past five days, we removed six stocks from the European Focus List: Neoen (NEOP.FR), Givaudan (GIVN.CH), Ferrari (RACE.IT), Orsted (DEN.DK), Euronext (ENX.FR), and Simcorp (SIM.DK). Actionable names on the Focus List include Teleperformance (ROFR.FR).
- In this report, we highlight stocks with improving short-term technical profiles. Actionable names on the list include Autogrill (AGL.IT).
- We also highlight stocks with downside risk, including Nexans (NXS.FR) and VAT (VACN.CH).
Arezzo
What’s happened? Arezzo reported strong Q4 FY20 results after market
yesterday, with net revenue growing 38% y/y, above estimates of 9%. Adjusted
EBITDA grew 61%, driven by Reserva products and increased operational
leverage. We expect a positive reaction given the results and would
recommend investors to add to positions as the stock is still in a buyable range.
JS Global Lifestyle
What’s happened? JS Global Lifestyle declared its preliminary results for the
year ended FY20 for the Joyoung segment. It also declared FY20 profit estimates
for the entire group and expects profit to be ~$385M, compared with $85M last
year. This is ahead of consensus estimates of $303M. The stock rose 13%
yesterday after this strong update. We would like investors to hold positions as
the stock is extended from an ideal buy point.
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The Stoxx 600 was moved to an Uptrend Under Pressure on Friday. With increasing pressure in the region reflected by rising distribution among major indices, several markets have been moved to an Uptrend Under Pressure. France, Norway, and Austria are the only countries remaining in a Confirmed Uptrend.
- We recommend a near-term cautious approach given this week’s severe price break, spike in volatility, rise in distribution, failed breakouts, and narrowing leadership.
- Recent weakness in the market coincides with a strong rotation toward value/re-opening trades. We have reason to believe that this “re-opening trade” may have another leg to run. Watch list – re-opening trade ideas include: