Prysmian (PRY.IT; PRY IM) – $21B market cap; $47M ADV: We added Prysmian to the Developed Markets Focus List as the stock is actionable after breaking out of a stage-one consolidation base. Prysmian is the world’s largest cable manufacturer. Increased exposure to the high-growth North American market after Encore acquisition, strong demand for highvoltage cables on the back of energy transition capex, and expected recovery in volumes in the telecom end market are the key growth drivers. Consensus expects sales and EPS CAGR of 10% and 34%, respectively, in FY23–26. Fundamental & Technical note
Author: vipin khare
O’Neil Capital Equipment Sector Weekly
Triveni Turbine (TRV.IN; TRIV IN) – $3B market cap; $21M ADV: We added Triveni Turbine to the Emerging Markets Focus List as the stock bounced off its 100-DMA and retook support along its 50-DMA on 2x the average volume. Triveni Turbine is the world’s second largest manufacturer of steam turbines of up to 100 MW capacity and a market leader in India with ~60% share. Rising investments in captive power generation across energy-intensive industries and increasing share of high-margin export and aftermarket revenue by expanding
local presence are the key growth drivers. Consensus expects revenue CAGR of 26% and EPS CAGR of 30% in FY24–26.
O’Neil Capital Equipment Sector Weekly
FL-idea E Ink (PVI.TW) reported sales of TWD 3,096M (+0.5% m/m; +25.3% y/y) in September. Q3 FY24 sales now stand at TWD 9,189M (+20.0% q/q; +34.7% y/y), missing estimates by 0.7%. Support is at its 21-DMA (-1%), followed by its 50-DMA (-4%). It is 7% off highs.
Aerospace & Defense: Spending and Stock Performance During Conflicts
- Global defense budgets are expected to expand to $2.2T by 2027, at a CAGR of 6.5%, driven by:
• Rising geopolitical tensions in Europe and Asia-Pacific.
• Fleet recapitalization of key platforms in the U.S.
O’Neil Capital Equipment Sector Weekly
Cintas Corp (CTAS) – $82B market cap; $308M ADV: The company reported beat-and-raise Q1 FY25 results. Revenue (+7% y/y) came in slightly above estimates and EPS (+19% y/y) beat estimates by 10%. The stock is extended from an ideal entry point after breaking out of its stage-one seven week flat base. Immediate support is at its 21-DMA (-0.5%), followed by its 50-DMA (-3%).
O’Neil Capital Equipment Sector Weekly
Vertiv (VRT) – $37B market cap; $859M ADV: We added Vertiv to the U.S. Focus List as the stock retook its 50- and 100-DMA on above average volume. Vertiv is a market leader in a $17B data center infrastructure market growing at a 14–17% CAGR through 2028. It makes electrical equipment used to power, cool, and maintain the critical infrastructure in data centers. Mainstream adoption of liquid cooling for AI data centers, improving demand from hyperscalers and colocation operators in APAC, and margin expansion due to increased sales from high-margin offerings are the key growth drivers. Consensus expects revenue and adjusted EPS CAGR of 13% and 34%, respectively, in FY23–25. Fundamental & Technical note
O’Neil Capital Equipment Sector Weekly
Praj Industries (PNS.IN; PRJ IN) – $2B market cap; $12M ADV: We added Praj Industries to the Emerging Markets Focus List as the stock bounced off its 50-DMA on above average volume. It is trading 2% below the pivot of a stage-two, six-week flat base. The company provides engineering, procurement, and construction services for setting up ethanol production plants. Praj is India’s largest technology licensor, with every six out of ten ethanol plants in the country set up by it. Government push for ethanol-blended petrol in India, recent relaxation of curbs on the use of sugarcane juice for ethanol production, and increasing international order book are the key growth drivers. Consensus expects revenue and EPS CAGR of 17% and 24%, respectively, in FY24–26. Fundamental & Technical note
O’Neil Capital Equipment Sector Weekly
AeroVironment (AVAV): Reported better-than-expected Q1 FY25 results. Revenue (+24% y/y) beat estimates by 3% and adjusted EPS (-11% y/y)
beat estimates by 51%. The stock is testing support at its 50-DMA (-2%) and is forming the right-side of a stage-three cup-with-handle base, with the
pivot 15% away. Add positions on a high-volume retake of its short-term moving averages.
Select Companies Presenting in Industrial Conferences This Wee
Key points from this report:
- The following select ideas are showing near term relative strength while displaying good O’Neil Fundamental ratings and rankings: CARR, SWK, CW, MOGA, RTX, MMM, AXON, R.
- The following select ideas are showing near term technical weakness with poor O’Neil Ratings and Rankings: HON, OTIS, IR, ROK, VRT, FTV, LECO, WSC, AGCO, VNT, AMN.
- Included are annotated datagraph for the FL stocks and stocks that are trading in or near the pivot range. Stocks include: LHX, URI.
O’Neil Capital Equipment Sector Weekly
AeroVironment (AVAV) – $5B market cap; $66M ADV: We added AeroVironment, a global market leader in a rapidly growing $11B+ unmanned
aircrafts and loitering munitions market, to the U.S. Focus List as the stock gapped above its 50-DMA support on more than 2.5x the average
volumes after receiving a ~$1B order for supply of its Switchblade loitering munitions. Ukraine’s successful use of Switchblade has sparked its
demand globally. Small countries with limited defense budgets are utilizing cost-effective, high-volume unmanned systems and weapons. AVAV
benefits from being the sole global player capable of producing thousands of these systems. The new order takes the revenue visibility to ~80% of its
FY25 guidance, up from just ~55%. Margins are expected to improve as the mix evolves towards product sales and away from service sales.
Consensus expects sales and EPS CAGR of 14% and 19%, respectively, in FY24–26. Fundamental & Technical note
