The Disposa European Chapterthat is, the companies with a small capitalization, in recent years, they did not keep up the COn the companies with a larger capitalization, with respect to which they maintain a performance that is placed at the minimums of the last nine years. This is what he underlined by the analysts of Bank of Americawho hypothesize that European SMEs, in the near future, could recover the lost soil and perform better of the Large Cap. For this reason, the business bank maintains a positive view of European SMEs. But what are the factors that could make the trend reverse?
Four factors capable of supporting SMEs
Bank of America experts believe that there areor four key factors which could support European Small Caps in the short term. First of all, one is expected Sleeping of the growth of the euro areathanks to the attachment of the credit conditions (TBC rates cut) and the tax burden, which generally are rather advantageous for the small caps.
Secondly, a potential cease the fire between Russia and Ukraine It could lead to a drop in energy prices and a reduction of uncertainty in Europe, favoring a Small Cap surreptiforms.
Bank of America then believes thatand the negative impact of the weakness of the euro will be minimaland on the small caps, which are more focused on the internal market, in contrast with the Large Caps which are more exposed to global level and therefore to the fluctuizons of the changes
Finally, it is expected that the monetary ease of the European Central Bank (ECB) will translate into one reduction of bund yields and bond yields in general, fueling an superperformance of companies with smaller capitalization, which are more conditioned by these.
The judgment remains overweight (overwear)
With these perspectives Bofa maintains a judgment Overweight (overweight) On the European Small Caps and on the companies most linked to the domestic market, compared to those with a larger capitalization and exposed to international markets. The US business bank estimates in particular an overperformance of about 10% in the coming months.
It is a choice that is part of a more general strategy that tends to overweight European actions Compared to global ones, maintaining a preference for titles DThe highest qualities and a location underweight on cyclical titles compared to defensive.
