Top Picks Playlist
13 January 2023Listen and watch Zeus’ analysts as they present their top picks for 2023.
Read the full research note here.
Introduction
AssetCo
Bango
DWF Group
Equals Group
Gooch & Housego
Inchcape
Norcros
Surface Transforms
Topps Tiles
Zoo Digital
Introduction
On 10 January last year, we set out our ten top stock picks for 2022, in what turned out to be a very poor twelve months for global equities, due to war, accelerating inflation, political instability and recession fears. Between 7 January 2022 and 31 December 2022, the AIM All-Share Index declined 30.0%, whilst the average performance of our ten top picks was -24.7%, a modest relative outperformance.
Now the Zeus team sets out their new top picks for 2023.
Read the more in the Top Picks research note here.
AssetCo
AssetCo is in the process of creating an integrated asset manager. In 2021 and 2022, it acquired four fund managers, an ETF platform and a 30% interest in Parmenion, a digital wealth management platform.
Read the more in the Top Picks research note here.
Bango
We see substantial upside to both earnings estimates and multiples, driven by the acquisition of NTT Docomo’s payments business, announced on 30 August 2022.
Read the more in the Top Picks research note here.
DWF Group
We believe the strategic change programme unveiled by management in July 2020 has been successfully executed and is far from being reflected in the share price.
Read the more in the Top Picks research note here.
Equals Group
In 2022 Equals’ share price rose 33% (+30.7% whilst a Zeus Top Pick in 2022), while its revenue rose by >47%, gross profit rose by >33%, and consensus forecasts were raised on numerous occasions.
Read the more in the Top Picks research note here.
Gooch & Housego
Gooch had a difficult 2022 but we think the outlook is brighter. The Group is still adjusting to shortages of skilled employees and supply chain constraints but has a record order book.
Read the more in the Top Picks research note here.
Inchcape
Inchcape is the market-leading independent global automotive distributor, structurally exposed to higher growth markets with low motorisation rates. The Group has made substantial progress on its strategic initiatives since its Capital Markets Day in November 2021, aiming to grow market share in Distribution and to capture more profits over the life of a vehicle.
Read the more in the Top Picks research note here.
Norcros
Norcros has consistently traded at a discount to the sector with its exposure to Southern Africa, the historic pension deficit, and lower margins than the most highly rated peers often cited as reasons.
Read the more in the Top Picks research note here.
Surface Transforms
Surface Transforms has done an impressive job winning new contracts over the past 18 months. Last November topped it off with a £100m contract announced with OEM 10, a major global automaker.
Read the more in the Top Picks research note here.
Topps Tiles
Topps Tiles has been steadily changing over the last few years as management has implemented its strategy of achieving 20% market share.
Read the more in the Top Picks research note here.
Zoo Digital
ZOO Digital is a leading provider of end-to-end localisation and media services, for TV and film content, to streaming platforms such as Disney+. We expect the Group’s scalable technology to take market share in the large, underpenetrated dubbing market.
Read the more in the Top Picks research note here.
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