Analysts aim for safety for foreign stocks

For their lists of favorite foreign stocks, the experts polled by the editorial staff opted for the essential companies of our modern economy, such as Microsoft and ASML.

Not less than 57 names are on the lists of favorite foreign stocks of the 14 banks, stockbrokers and investment magazines we contacted. Analysts have set their sights on safe betswhile focusing on sustainability and the economic opportunities generated by the climate transition. The banking and insurance players are making a “comeback” thanks to the rise in interest rates, which is supporting their profits. Furthermore, the pharmaceutical sector is well represented.

1. Microsoft

With five nominations, Microsoft is by far most popular action for 2023. “Microsoft has been a leading company and things are not expected to change in the coming decades”, justify the analysts of 1Vermogensbeheer. “Few companies in the world do not have one or more subscriptions with Microsoft. Over the next few years, the the group’s growth engine will be the Cloud division, Azure. The world is increasingly using cloud solutions and Microsoft is one of the absolute tops in this sector.”



“There are few companies in the world that do not have one or more subscriptions with Microsoft.”

At the Insider of the stock market, we also underline the value created by the company for its shareholders: “The generous shareholder compensation is a major asset of the group. In fiscal 2022, it redistributed $18.1 billion in dividends and spent $30.9 billion buying back treasury stock.” Result: The number of shares outstanding fell by approximately 1% per year This high level of redistribution is the result of abundant cash flow. Despite falling in price over the past year, the stock isn’t cheap, but Microsoft’s many qualities make it a essential value in portfolios.”

2.ASML

“Globally, there are only a handful of companies capable of building the infrastructure needed to produce microchips, but for the most advanced chips, you just can’t do without ASML. The Dutch manufacturer of equipment for the semiconductor industry enjoys a monopoly for extreme ultraviolet photolithography machines (EUV)”, explains the team of experts from Leleux to justify their preference for the Dutch company.

“Furthermore, ASML can take advantage of long-term trends like the emergence of artificial intelligence (AI).” At Leo Stevens & Cie, we are convinced of the vital importance of ASML for the world economy. every two years) would have disappeared and, with it, a highly technological future. Think AI, 5G, self-driving cars and the metaverse.”

3.LVMH

“Once again, the group displaysexcellent results“, says one at Dierickx Leys about the French luxury empire, LVMH. “In the first three quarters of the year, turnover increased by 28%, including 20% ​​growth organic. The main division, Fashion & Leather Goods, achieved a turnover of 27.8 billion euros. In addition, this increase comes just as much from the United States and Europe as from Japan.



“LVMH has strong pricing power, high margins, a growing customer base, good resistance to recessions and negligible exposure to rising energy prices.”

“Compared to other luxury brands, LVMH is relatively little exposure to Europe. It’s a advantage at a time when our Old Continent is facing headwinds from the macro-economic side and when the chinese tourists stay at home“, note the experts of Leleux. “LVMH has strong pricing power, high margins, a growing customer base, good resistance to recessions and negligible exposure to rising prices. energy price. LVMH has too many assets to ignore.”

4.Alphabet

“The parent company of Google search engine, YouTube and Google Cloud, among others, has recently lost a significant portion of its stock market value. current valuation is historically low and, in our opinion, too cheap for a company showing such growth,” said ABN Amro’s team of analysts of the American technology giant.

Also at Dierickx Leys, Alphabet is one of the favorite stocks. “Alphabet depends on online advertisements for the majority of its revenue and, thanks to the trend towards digital transformation, the demand for ads on Google’s platforms remains high. In tough economic times, it’s usually not the first place to cut advertising budgets,” the experts say.

5. Rock

The Swiss pharmaceutical giant Roche is of a different caliber. “Anyone who thinks ‘quality’ on the European chessboard can hardly ignore Roche. The pharmaceutical giant is a safe bet that benefits from a well-filled pipeline and solid cash flows“, explain the analysts of Van Lanschot to justify their choice.



“It is true that Roche disappointed with the results of the drug Ganatenerumab, intended to fight against Alzheimer’s disease, but, in the pharmaceutical industry, ‘You win some, you lose some'”

“It is true that Roche has disappointed with the results of the drug Ganatenerumab, intended to fight against Alzheimer’s diseasebut, in the pharmaceutical industry, ‘You win some, you lose some'”. For the Van Lanschot team, Roche should easily overcome this setback. “We continue to have confidence in Roche. The company benefits from a mature pipeline of new medicines and, at Roche, the number of long-term successes has always been significantly higher than the number of failures.”

6. Sanofi

The second pharmaceutical group in the top 10 is a French company. “Sanofi had to restructure to cope with the decline in sales of several drugs – in local currency – but the group keep progressing“, explain ING analysts. “The latest results quarterly are good and the outlook for the full year has been revised upwards. Dupixent, an asthma drug, consistently shows strong growth. This is important, because sales of this drug could increase sharply over the next few years.

At a valuation of 10 times expected earnings for 2023, the Sanofi share price is below its historical average. “And Sanofi displays a healthy balance sheet“, add the analysts of L’Investisseur. “Last year, Zantac-related lawsuits – this heartburn drug is said to be carcinogenic – has weighed on Sanofi’s share price, but, based on recent court rulings, the pharmaceutical giant appears to have more and more chances to win.”

7. Berkshire Hathaway



“Berkshire Hathaway has proven to be a quality investment and defensive in these tumultuous times.”

Stock market guru Warren Buffett’s investment vehicle deserves a spot in the top 10 thanks to its impressive track recordbut also thanks to its future prospects, say analysts. “Berkshire Hathaway has proven himself to be a quality and defensive investment in these tumultuous times. With the Berkshire share, shareholders buy a diversified holding, managed by two of the best investors of all time”, explains one at Leo Stevens & Cie. “Since we expect a lot of volatility on the stock markets in 2023 , Berkshire remains a must for any wallet.” Also, the $150 billion treasury is not to be overlooked.

8. Saint Gobain

The French industrial group Saint-Gobain is named twice. KBC Asset Management: “Knowing that buildings are responsible for more than a third of the world’s energy consumption, it is clear that insulating building materials and sustainable renovation are essential parts if we want to solve the very complex climate puzzle. The cleanest, cheapest and safest energy is still and always the one we don’t use,” say the experts at KBC AM.

“And Saint-Gobain, the building materials giant, should play an important role: the group derives nearly 70% of its turnover from products and services that help its customers to make their homes and buildings more sustainable.” At ING, Saint-Gobain is also cited, but with certain reservations: “To short term, access to gas and the slowdown in the new construction market can act as brakes.”

9. Corbion



“The theme of sustainability is expected to remain in the spotlight in 2023 and, in this context, we believe Corbion deserves its place among our favorite stocks.”

The last two companies in the top 10 are Dutch. “The sustainability theme should remain in the spotlight in 2023 and, in this context, we believe that Corbion deserves its place among our favorite stocks”, explains Bank Nagelmackers. “This Dutch company produces sustainable ingredients for the food and biochemical sectors. The group’s key activities generate attractive and stable financial flows. Niche segments like lactic acid-based biodegradable plastics and algae-based food ingredients are still limited in size today, but could turn into success stories in the years to come.”

10.Alberts

“We really appreciate the family businesses with healthy balance sheets and who have a long-term vision“, we explain at L’Investisseur. “Aalberts is active in future activities of a sustainable nature such as energy savings and the production of quality drinking water and take advantage of megatrends. The company should therefore show sustainable growth, while historically its valuation is rather low.”

Come next…

They failed to make it into the individual top 10, but the banks JPMorgan Chase and Intesa San Paolo have also earned a spot on the list of favorite stocks. The latter is considered a hidden pearl by KBC AM: “Intesa Sanpaolo is one of the banks that benefit the most from the rise in interest rates, because a significant part of its credit portfolio is made up of variable rate products which therefore yield more”, we can hear. “The bank is also well diversified, which allows it to benefit from the increase in premiums paid by insurance customers. The good dividend yield and the low valuation are the icing on the cake.” Insurers NN-Group and ASR were also cited by the analyst group.

We would like to say thanks to the author of this short article for this outstanding material

Analysts aim for safety for foreign stocks


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