Yahoo Finance 5 French stocks that may have been penalized too harshly according to Barclays
Investing.com - After showing significant losses last week due to the dissolution of the National Assembly, French stocks rebounded on Monday, with the CAC 40 closing up 0.91%, and the trend remains positive Tuesday morning.
However, French stocks are still far from erasing last week's losses, a situation that could present buying opportunities according to Barclays analysts, who expressed their views in a note published Tuesday.
⚠️TOOLS, ADVICE, AND AI STRATEGIES FOR SUCCESS IN THE STOCK MARKET! Join InvestingPro to equip yourself with professional tools and follow our AI-managed strategies to boost your portfolio and know which stocks to buy regardless of market conditions! CLICK HERE to benefit from the special rate reserved for our readers and take your investments to the next level!⚠️
The analysts noted that recent polls suggest the two most likely outcomes for the legislative elections are either a cohabitation government with the RN or a Parliament without a majority, but the outcome remains uncertain, which should lead to erratic price movements in the stock market.
Barclays also estimated that the main risks worrying investors are:
Political instability making France ungovernable Fiscal indiscipline, with a more spendthrift government or simply a government unable to pass reforms Business-unfriendly policies with higher taxation and more government intervention Questioning the integration of the EU and its institutions
However, Barclays analysts also pointed out that the decline in some stocks has probably been exaggerated.
This includes BNP Paribas (OTC:BNPQY) (rated “overweight” with a target of €80), Edenred (EPA:EDEN) (rated “overweight” with a target of €61), Veolia Environnement SA ADR (OTC:VEOEY) (EPA:VIE) (rated “overweight” with a target of €38), Vinci SA (EPA:SGEF) (rated “overweight” with a target of €140), and Sanofi (NASDAQ:SNY) (rated “overweight” with a target of €105).
Conversely, they noted that telecom operators Orange SA ADR (NYSE:ORAN) and Bouygues (EPA:BOUY) have significant exposure to the French domestic market, making them more vulnerable to the current political uncertainty.
Related Articles
5 French stocks that may have been penalized too harshly according to Barclays
Amazon Labor Union votes to ratify Teamsters affiliation
China's rich ditch flashy luxury as global sales stall, says Bain
