“The Week”: Bright Spots

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  François Bloch
  Experte

Switzerland

The shares of Belimo (ticker symbol: BELN SW) are increasingly attracting the attention of foreign financial investors. Despite a currently very high price/earnings ratio of 53 points, demand remains unbroken. This is probably due to the expected positive development of the operating result (EBIT), which could double to CHF 305.3 million by 2027. This would reduce the price/earnings ratio to below 39 points by 2027.
Trading strategy: Reload.

The recommendation to buy Avolta (ticker symbol: AVOL SW), a company with strong growth. At present, it seems only a matter of time before the company with a market capitalization of CHF 6.4 billion is taken over. The operating result (EBIT) could reach CHF 1.162 billion in 2027.
Trading strategy: Reload.

The shares of Sulzer (ticker symbol: SUN SW) from Winterthur also make me very positive. The long-established pump manufacturer could increase its EBIT to an impressive CHF 536.4 million in 2027. For a company with a valuation of CHF 5.23 billion, this would be a strong performance that would mean a price/earnings ratio of less than 14 points – an attractive level.
Trading strategy: Reload.

The recent share price weakness at Sandoz (ticker symbol: SDZ SW) has been consistently exploited by strategically oriented buyers, and in my view the window of opportunity for an entry is not yet closed. EBIT could improve to CHF 2.561 bn in 2027.
Trading strategy: Reload.

The shares of EFG International (ticker symbol: EFGN SW) are increasingly coming into focus. An attractive dividend yield of 4.82% is expected for 2026. At the same time, the book value per share could rise to CHF 9.20 by 2027.
Trading strategy: Reload.

The focus is also on the shares of Lonza (ticker symbol: LONN SW), which have currently reached an interim high. The markets’ expectations regarding EBIT development are high: an increase to CHF 2.164 billion is forecast by 2027. This would reduce the price/earnings ratio to below 27 points in 2027.
Trading strategy: Reload.

Europe

The shares of Thales (ticker symbol: CBK GY) have risen by an impressive 92.86% on the Paris stock exchange since the beginning of the year. According to my calculations, the operating result (EBIT) could improve to EUR 3.318 billion by 2027. The steadily growing dividend payments in particular could be attractive for investors in the long term.
Trading strategy: Reload.

Also with Mediobanca (ticker symbol: MB IM) is also on the move at the moment. Despite an already significant increase of 48.63% since the turn of the year 2024/2025, the share remains exciting. EBIT could increase to EUR 2.228 billion in 2027. I also expect a dividend yield of over 7% for 2027.
Trading strategy: Reload.

The Dutch ABN Amro Bank (ticker symbol: ABN NA) may no longer be one of the major European banks, but it is in an excellent position. The operating result could rise to EUR 3.685 billion in 2027. I expect an EBIT margin of 239.48%, which is high for the banking sector.
Trading strategy: Reload.

The shares of Poste Italiane (ticker symbol: PST IM), whose EBIT should improve to EUR 3.405 bn by 2027, also appear promising. With an expected EBIT margin of 24.87% and a forecast dividend yield of 6.98% in 2027, the general conditions are right in my view.
Trading strategy: Reload.

In my view, the shares of the construction software manufacturer Nemetschek (ticker symbol: NEM GY). Pre-tax profit could more than double to EUR 429.7m by 2027. An EBIT margin of 28.02% is also forecast for the stock, which is valued at EUR 14.11bn, in 2027.
Trading strategy: Reload.

The shares of the Austrian energy group are also on the rise OMV (ticker symbol: OMV AT), which is heading for new record highs with a market capitalization of EUR 15.4 billion. The dividend could increase to EUR 4,415 by 2027. An EBIT margin of 11.66% in 2027, which I expect, represents a historic peak for the company.
Trading strategy: Reload.

The shares of the French technology group Safran (ticker symbol: SAF FP) are also attractive. There are high hopes that the positive share price performance will continue until the end of 2027. EBIT could more than double to EUR 6.280 billion by 2027.
Trading strategy: Reload.

USA

On the speculative side, the shares of Federal Home Mortgages (ticker symbol: FMCC US), better known as Freddie Mac, could be of interest to investors willing to take risks. The company shows potential from today’s perspective. Pre-tax profit could rise to USD 17.327 billion by 2027. The book value per share could reach USD 13.02 by 2027.
Trading strategy: New.

In my view, future-oriented investors should take a look at Howmet Aerospace (ticker symbol: HWM US), a specialist in aircraft components. The operating result (EBIT) could improve to USD 2.6 billion by 2027. The EBIT margin could reach 26.78% by 2027.
Trading strategy: Reload.

The shares of Mercadolibre ticker symbol: MELI US), the South American counterpart to Amazon. I expect operating profit to increase to USD 6.374 billion by 2027. The forecast return on equity could reach 38.79% in 2027.
Trading strategy: Reload.

Popping up on the radar for the first time is ATI Inc. (ticker symbol: ATI US), a manufacturer of aircraft components. EBIT could improve to USD 879.5m by 2027. The return on equity could reach 27.05% by then. In addition, the book value per share could increase by 122% by 2027.
Trading strategy: Reload.

In my opinion, a real discovery is the e-commerce company Chewy (tickert symbol: CHWY US) is a real discovery. The company could increase its EBIT to USD 523.4m in 2027. With an EBIT margin of 24.63% expected by me for 2027, Chewy presents itself as very well positioned in a dynamic sub-segment of online retail.
Trading strategy: New.

Yours sincerely,
François Bloch

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Unfortunately no “Bloch live” today. We will be back for you next week.

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Disclaimer
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