Small and midcaps: no holidays for Portzamparc High Five – 08/04/2022 at 08:20


Last month, High Five posted a good performance: +11.1%, compared to +9% for the CAC Mid & Small index. (Photo credits: Adobe Stock – )

While many investors are on vacation or already at the beach, Portzamparc analysts remain faithful to the position even during the summer and update their selection of five stocks, the High Five, to August. Last month, High Five posted a good performance: +11.1%, compared to +9% for the CAC Mid & Small index. All the stocks of choice are there, but the performance is driven by Ipsos (+ 13.5% of the time) and especially Poujoulat (+ 22.1%).

So the month of August is an opportunity to make some changes by leaving Ipsos, Poujoulat but also Clasquin. Ipsos exits with no future news flow but remains on the Portzamparc conviction list for the second half. Poujoulat left the High Five, because he confirmed the expectations placed on him and Clasquin was considered to be at a price “close to the market”.

Three new candidates enter, or rather return: Hexaom, SII and Esker.

Also read: Small and medium caps: Portzamparc clears its July high five

A small reminder for investors who are not familiar with this option: it is equally weighted and evaluated every month. Stocks are selected using a dual approach: excellent fundamentals and short-term market potential. The free float must be more than 10 million euros. Detailed review of this Summer High Five.

Esker: buy with a target price of 191 euros

For analyst Nicolas Royot, Esker is a GARP value, meaning growth at a reasonable price, a growth value but at a reasonable price. The publisher of document dematerialization solutions confirms its goals, especially the operating margin of 12 to 15%. Portzamparc expects operating income of 11.7 million euros in the first half, up 28%. The share price has been divided into three since the highest with an EV / CA ratio (enterprise value over turnover) estimated at 4.9 for 2022 and 4.2 for 2023.

Next event: first half results on September 14

Hexaom: buy with a target price of 46 euros

In a complicated context, should we worry about the former Maisons France Confort? Analyst Arnaud Despré doesn’t think so. So yes, developer orders fell in the first half, either in volume or value. But Portzamparc did his calculations. Even in the worst case scenario (income from the construction of individual houses decreased 12% with an operating margin of 2.5% which means stable costs and the lowest in the last ten years), operating income will decrease only by 4.6% compared to 2021 and increased by 20.9% compared to 2020 thanks to the diversification carried out by the group.

Next event: Q2 earnings on August 4

Roche Bobois: Strengthening a target price of 40 euros

The world leader in high-end furniture retains its place in the High Five and the target price has been raised from 36 to 40 euros. There are no major changes in the analyst’s arguments with activity visibility in 2023, a margin driven by the positive effects of the exchange rate in the North American markets and a “reassuring” position for future publications.

Next event: first half results on September 29

Reworld Media: buy with a target price of 10.30 euros

Another value that remains in the High Five, Reworld Media had a good start to the year and the acquisition of Unify and its 12 reference brands (including Aufeminin, Doctissimo or Gamekult) is considered promising.

Next event: 1st half results on September 21

SII: buy with a target price of 54.20 euros

SSII is in “a very sustained dynamic” and the publications of its peers at the end of July “confirm an unceasing demand from customers regardless of the context”. For analyst Maxence Dhoury, growth will remain in double digits for the first half, despite a more difficult basis for comparison. The valuation remains reasonable “in a scenario that is nevertheless likely to be raised”. Good extender…

Next event: Q1 earnings on August 10.

Laurent Grassin (redaction@boursorama.fr)

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