Investing.com --UBS Global Research on Friday added Basic-Fit, De'Longhi, GEK Terna, Huber+Suhner, Inficon, Salzgitter, Scout24 and Siltronic to its "Top 20" list of European small and mid-cap stocks.
UBS dropped Brunello Cucinelli, Delivery Hero, Inchcape, Nexans, Standard Life, Savills, Theon International and Zealand Pharma from the list. All 20 names carry a Buy rat
Prices as of Oct 14 put Basic-Fit at €29.68 against a UBS target of €47.50, an upside of 60%.
UBS said the stock trades at about a 25% discount to its post-COVID history and on 5 times 2027 expected earnings before interest, tax, depreciation and amortisation, in line with its historic low. It said it kept cautious assumptions because of the company's past problems carrying out its plans.
De'Longhi trades on 8 times expected 2025 earnings before interest, tax, depreciation and amortisation, below its long-term average and its peers, UBS said.
The target is €49.00, 19.3% above the €41.08 price. The company has announced it will buy a further 27% of its professional coffee division, paying about €660 million in cash.
Scout24 has a UBS target of €115 against €73.80, an upside of 55.8%. UBS said the German property platform's shares have fallen by about 10% this year on fears that artificial intelligence could disrupt online listings businesses, a sell-off it called overdone.
Salzgitter is rated Buy because UBS expects the EU to struggle to replace imported steel being removed by tighter safeguard measures. Tariffed imports cost more than €900 a tonne, against a spot price of €745. The target is €71.00, 46.8% above the €48.38 price.
Huber+Suhner has a target of 300 Swiss francs against 174.60 francs, an upside of 71.8%. UBS expects sales to reach 2.2 billion francs by 2030 from 864 million in 2025, helped by data centre and defence demand.
The shares trade on 15 times expected 2028 earnings, against about 30 times for Swiss data centre peers, UBS said.
For Inficon, UBS expects the Swiss company to raise the midpoint of its 2026 sales guidance of $750 million to $780 million when it reports third-quarter results in October.
UBS forecasts sales of $804 million, against a consensus of $785 million. Its target is 215 francs.
UBS said Siltronic's revenue should turn up in 2027 after a four-year downturn, as tighter supply and rising prices lift silicon wafer sales. It said near-term earnings are likely to stay weak.
GEK Terna trades on about 20 times expected 2028 earnings, and UBS forecasts earnings per share growth of about 16% a year over the next five years.
The Top 20 is up 18.6% so far in 2026 against 9.1% for the MSCI Europe Small Cap index, UBS said. Since 2006 it has beaten the index in 15 of 20 years, with annual growth of 12.9% against 6.7%.
A €100 million investment in the list in 2006 would now be worth €1.12 billion, against €371 million in the index.
UBS said small and mid-cap stocks have less trading volume than large caps, which can make their prices more volatile.
Original Article
Here are the latest additions to UBS' 'Pan-European Small & Mid-Cap' list
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