2023-08-15 15:09:02
August 15, 2023 Today at 5:09 PM
Argenx’s performance concealed a particularly gloomy month for the Bel 20. Apart from the biotech group, only five stocks rose in one month.
THE Bel 20 share price
fell on average 1.2% during the past month. At the same time, the market capitalization of the components increased by 2.5% to reach 245.7 billion euros. This divergence is explained by the performance ofArgenx
which climbed 37% positively impacting the capitalization of the index for an amount of more than 8 billion euros. Without the biotech group, the capitalization of the index would have contracted by 0.9%.
13
Targets identified
The average targets of 13 of the components of the Bel 20 have risen by an average of 0.5% since mid-July.
Apart from Argenx, only five other stocks in the index ended with positive results during the past month, notably Ackermans & van Haaren
(+3,8%) et UCB
(+3.6%). Conversely, 14 of the 20 components ended in the red, including 8 with an amplitude greater than 5%: Barco
(-14,4%), Elia
(-9,1%), Next
(-7,9%), Melexis
(-7,8%), We open
(-7,5%), WDP
(-6,5%), Building
(-6,3%) et Umicore
(-5,9%).
At the same time, the average goals of 13 of the 20 components of the index have appreciated, on average by 0.5% since mid-July. On the upside, Argenx (+16.6%) and Melexis (+4.5%) stood out, while Barco (-8.3%), Aperam (-4.6%) and Umicore ( -4.1%) posted the largest declines.
Read also
The values of the Bel 20 are evolving at increasingly discounted prices
The average fall in prices and the rise in targets led to a further increase in the average potential of Bel 20 components over 26.4%. Quite remarkably, all components now show potential above 10%, while four stocks (Barco, D’Ieteren
the next Ears
) approach or even exceed the 40% mark.
Winners and losers
Argenx was by far the most popular value during the past month, with in particular favorable clinical data in a second indication (PIDC) for Vyvgart and excellent sales figures announced in the quarterly figures. The group recorded numerous upward revisions for the objectives, in particular at Degroof Petercam, Morgan Stanley, Goldman Sachs, Deutsche Bank, Jefferies, Piper Sandler, Kempen, KBC Securities, Bank of America, Stifel, Guggenheim or Bryan Garnier.
Several analysts have pointed out that Argenx is becoming an increasingly attractive target for large pharmaceutical groups.
Following the strong performance since mid-July, KBC Securities removed the stock from its Benelux recommended stock list, while UBS moved to neutral. Several analysts also pointed out that Argenx was becoming an increasingly attractive target for large pharmaceutical groups looking for molecules to boost the growth of their turnover.
AB Inbev
made several downward adjustments to its targets on the occasion of the publication of quarterly results, notably at Kepler Cheuvreux, SocGen and Degroof Petercam. The decline in market share in the US market largely explains these revisions, with visibility remaining low for the coming months.
Read also
The hot spots of the results season for Bel 20 companies
We open suffered several negative reviews, with a downgraded rating at JPMorgan Cazenove, while many other brokers (Oddo BHF, Barclays, Deutsche Bank, Morgan Stanley) settled for lower their aim. Analysts point to tough market fundamentals for stainless steel European.
The KBC Securities analyst believes the reaction to Barco’s share price decline is exaggerated.
Barco recorded two reductions in targets (ING, KBC Securities) following the announcement of slightly disappointing figures accompanied by the health problems of CEO Charles Beauduin, who should however not not jeopardize the growth trajectory for the coming years. The KBC Securities analyst believes that the price reaction is exaggerated, and he points out that the leaders took advantage of the weakness of the title to buy back shares.
Melexis benefited from many positive revisions at the level of the objectives following the publication of the excellent half-year results and the raising of the objectives for the 2023 financial year, in particular at Jefferies, Morgan Stanley, Deutsche Bank, JP Morgan Cazenove, KBC Securities or Kepler Cheuvreux. For its part, Degroof Petercam had already returned to a neutral position before the publication of the half-yearly figures.
Other Reviews
Elia Group was escalated to buy at KBC Securities, with the analyst believing that the recent price drop now offers a good opportunity to return to the title.
Galapagos
was raised to long at KBC Securities as the analyst reviewed efforts to expand the CART-T cell therapy portfolio.
The summary
The prices of members of the Bel 20 have fallen in a month, but Argenx supported the capitalization of the index. two-thirds of Bel 20 stocks have retreated.The course objectives of 13 members of the star index of the Belgian market liked each other.The upside potential of the Bel 20 increases thus to more than 26.4%. All components have a potential of more than 10%.
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