Introduction
This curated guide highlights five small and mid-cap stock picks offering outstanding investment potential for 2024. Dive into the analysis of their financial performance, growth prospects, and market opportunities.
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Van de Velde (ISIN: BE0003839561)
Financial Performance:
Van de Velde, a luxury lingerie brand, reported strong direct-to-consumer sales growth of 11.1% for the first half of 2024, despite a decline of 9.4% in wholesale revenues. Total revenue stood at €116.2 million.
Key Highlights:
The brand’s repositioning of “Sarda” has seen substantial traction. However, poor weather negatively impacted swimwear sales.
Profitability and Valuation:
Boasting a solid balance sheet and attractive dividend yield, Van de Velde is valued at a P/E ratio below industry peers, making it a value buy.
Growth Prospects:
With ongoing brand development and expanding e-commerce channels, Van de Velde is well-positioned for continued growth.
Target Price:
Recommendation: Buy with a target price of €40.
DEME (ISIN: BE0974413453)
Financial Performance:
DEME’s robust order book underpins strong revenue growth projections. Its diversified marine solutions generated increasing revenue from renewable energy projects.
Key Highlights:
DEME’s strategic partnership with BP in the Gulf of Oman is a major milestone, signaling confidence in the company’s renewable energy projects.
Debt and Leverage:
Despite significant fleet expansions, DEME paused further investments due to high interest rates and cost pressures.
Potential Catalysts:
Plans to leverage green hydrogen and ammonia production for export could be transformative for DEME’s growth trajectory.
Target Price:
Recommendation: Accumulate with a target price of €190.
EVS (ISIN: BE0003820371)
Financial Performance:
EVS achieved record revenue in the first half of 2024, driven by high demand for its “Live Slow Motion” technology during major sports events.
Key Highlights:
The company has expanded into live news and entertainment broadcasts, diversifying its revenue streams.
Profitability and Valuation:
With a lean operational structure, EVS remains profitable and strategically positioned within its market.
Growth Prospects:
A strong foothold in the burgeoning live entertainment sector makes EVS an attractive long-term investment.
Target Price:
Recommendation: Buy with a target price of €40.5.
Kinepolis (ISIN: BE0974274061)
Financial Performance:
While impacted by Hollywood strikes, Kinepolis saw recovery in ticket and concession revenue by mid-2024. Revenue per visitor increased to €17.4.
Key Highlights:
Upcoming blockbusters like “Joker: Folie à Deux” and “Gladiator II” are expected to boost second-half performance.
Market Sentiment:
The return of high-profile releases and growing visitor spending signal optimism for the group’s profitability.
Target Price:
Recommendation: Buy with a target price of €50.
Melexis (ISIN: BE0165385973)
Financial Performance:
Melexis’ half-year results reaffirmed annual sales guidance of €1 billion, with a profit margin above 25%.
Key Highlights:
Its products cater to both EV and ICE vehicles, ensuring resilience in a volatile automotive market.
Growth Prospects:
With increasing adoption of advanced vehicle safety and lighting technologies, Melexis is set for consistent growth.
Target Price:
Recommendation: Build with a target price of €110.
Impact of Macroeconomic Factors:
Global uncertainties, including geopolitical tensions and China’s economic slowdown, present both challenges and opportunities. Each company’s robust strategy mitigates risks, highlighting their resilience.
Total Addressable Market (TAM):
From automotive semiconductors to renewable energy and luxury retail, these firms operate in high-growth sectors with expansive TAMs.
Conclusions, Target Price Objectives, and Stop Losses:
- Van de Velde: Target Price €40; Stop Loss €30
- DEME: Target Price €190; Stop Loss €160
- EVS: Target Price €40.5; Stop Loss €32
- Kinepolis: Target Price €50; Stop Loss €40
- Melexis: Target Price €110; Stop Loss €90
Discover More
For more insights into analyzing value and growth stocks poised for sustainable growth, consider this expert guide. It provides valuable strategies for identifying high-potential value and growth stocks.
We also have other highly attractive stocks in our portfolios. To explore these opportunities, visit our investment portfolios.
This analysis serves as information only and should not be interpreted as investment advice. Conduct your own research or consult with a financial advisor before making investment decisions.
Disclaimer:
This publication is for informational purposes only and does not constitute financial advice or a solicitation to buy or sell any securities. The data presented reflects the situation as of September 1, 2024, and may no longer be current. Investors should conduct their own research and consult with a professional advisor before making any investment decisions. We are not responsible for any losses incurred based on the information provided.
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