Small and medium values: no vacation for the high five from Portzamparc

Over the past month, the High Five has performed well: +11.1%, compared to +9% for the CAC Mid & Small Index. (Image credit: Adobe Stock – )

While many investors are on vacation or already at the beach, the Portzamparc analysts are staying true to their position even in the summer months and have updated their selection of five stocks, the High Five, to August. Over the past month, the High Five has performed well: +11.1%, compared to +9% for the CAC Mid & Small Index. All stocks in the selection are up, but performance was driven by Ipsos (+13.5% over the period) and Poujoulat (+22.1%) in particular.

The month of August is therefore an opportunity to make some adjustments by leaving Ipsos, Poujoulat but also Clasquin. Ipsos is leaving with no upcoming news but remains on Portzamparc’s conviction list for the second half. Poujoulat leaves the high five precisely because he has confirmed expectations placed in him and because Clasquin is rated as “close to the market”.

So three new candidates are stepping in, or rather their return: Hexaom, SII and Esker.

Also Read: Small and Medium Caps: Portzamparc Clears His High Five in July

A quick reminder for investors unfamiliar with this pick: it’s equally weighted and reviewed monthly. Stocks are selected using a dual approach: excellent fundamentals and short-term market potential. The free float must be greater than 10 million euros. In-depth review of this summery high five.

Esker: Buy with a price target of 191 euros

For analyst Nicolas Royot, Esker is a GARP stock, ie growth at a reasonable price, a growth stock but at a reasonable price. The publisher of document dematerialization solutions has confirmed its goals, in particular that of an operating margin of 12 to 15%. Portzamparc expects an operating result of 11.7 million euros for the first half of the year, an increase of 28%. The stock’s price has been divided by three since the highest, with an EV/CA (enterprise value to revenue) ratio estimated at 4.9 in 2022 and 4.2 in 2023.

Next Event: First Half Results on September 14th

Hexaom: Buy with a price target of 46 euros

In a complicated context, do we have to worry about the former Maisons France Confort? Analyst Arnaud Despré doesn’t think so. So yes, the developer’s orders fell in the first half, whether in volume or value. But Portzamparc has done his calculations. Even in the worst-case scenario (income from individual home construction up 12% with an operating margin of 2.5%, implying stable fixed costs and the lowest level in the last decade), compared to 2021, operating income would only increase by 4, 6% decrease and by 20.9% compared to 2020 thanks to the diversification carried out by the group.

Next event: Q2 sales on August 4th

Roche Bobois: Reinforcement with a price target of 40 euros

The world market leader for high-quality furniture keeps its place in the high five and the price target is raised from 36 to 40 euros. No major changes in analyst’s arguments with activity visibility in 2023, margin driven by positive exchange rate effects with North American markets and still “reassuring” positioning for future releases.

Next Event: First Half Results on September 29th

Reworld Media: Buy with a target price of EUR 10.30

Another value that remains in the high five: Reworld Media is off to a good start in the year and the acquisition of Unify and its 12 reference brands (including Aufeminin, Doctissimo or Gamekult) is considered promising.

Next Event: 1st Half Results on September 21st

SII: Buy with a target price of EUR 54.20

The SSII is in “extremely sustained momentum” and the release of its comparison models at the end of July “demonstrates that customer demand is intact despite the general conditions”. For analyst Maxence Dhoury, first-half growth remains in double digits despite a very challenging basis for comparison. The rating remains appropriate “in a scenario that is nevertheless very likely to be raised”. A good extender…

Next event: Q1 sales on August 10th.

Laurent Grassin (redaction@boursorama.fr)