The first half of 2025 for European share markets can be divided into two distinct quarters. In the first quarter, the political uncertainty linked to the Trump administration weakened the sentiment of consumers and businesses, penalizing US technological titles. In March, the German Parliament approved a large spending package for infrastructure and defense, which triggered a long -term European bond yields. Denis Callioni, an analyst and European shareholding manager of Comgest explains it, stressing that the context proved to be favorable for Euro-centric companies, such as those active in the financial, utility, communications and defense sectors-so for the Value segment. In the second quarter, the scenario between Growth and Value titles was more balanced, thanks to the resumption of technological titles, favored by the truce in the commercial war declared on the occasion of the “Liberation Day”. On the other hand, the weakening of the US dollar was accentuated in the second quarter, braking the growth of profits in euros for many multinationals.
Equipment Europe, what investment opportunities?
Scout24, German leader in the digital marketplace real estate, has generated robust yields thanks to a constant execution. In the first quarter, revenues grew by 16 %, with EBITDA rectified and useful for action both increasing by 18 %, exceeding expectations for the entire exercise. Spotify recorded a strong rise, closing 2024 in a brilliant way with a fourth quarter higher than the expected on the whole line: organic growth of 17 % and significant improvement in profitability, with gross margins and operational in rapid expansion, the latter just above 11 %. Although less dynamic, even the first quarter of 2025 reported solid results, with a growth of revenues of 15 % and an improvement in profitability on an annual basis. Genus, active in animal genetics, has reacted positively to the announcement of the approval by the US FDA of the Genetic modification PRP for use in the food chain – a potential turning point for the pig industry, considering the global impact of the PRRS virus.
The View of Comgest
Novo Nordisk has recorded a flexion due to the growing fears about the competition linked to new generation assets in type 2 diabetes and in the treatment of obesity, as well as disappointing commercial performances, in particular for competition by US composition pharmacies. Despite the loss of altitude in the anti-obesity market, growth remains dynamic and new commercial initiatives should encourage a turnaround in the United States.
After a first highly volatile semester, “we expect volatility persists in the rest of the year. Commercial agreements, interest rates, currencies and geopolitics will probably continue to generate noise. We believe that this context is favorable for investment in quality and for the active selection of securities. We therefore continue to maintain our investment style, with a long -term trend targeted exposure and to the company that offer high visibility”.
Spotlight on Healthcare
This approach- concludes the expert- “is reflected in different sectors: for example, we expect London Stock Exchange Group to continue generating revenues of revenues at High Single-Digit rates, Scout24 continues to benefit from its leadership position in the German real estate market, Lonza continues the dynamic growth of revenues with improvement of the margins, and SA. migration to the cloud and new commercial successes.
