CEE stocks earnings to climb by 20% in 2011 |
Autor: Bancherul.ro
2011-01-05 19:26 |
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Erste Group analysts recommend: stock picking rather than sector allocation
* Cyclicals and commodities (especially oil&gas) to post solid performance; underweight defensives (telecoms and utilities)
* Improved investor sentiment towards CEE; 2011 to be a positive year for equity investments
"2011 will be a positive year for equity investments based on positive company results, attractive valuations, low bond yields and decreasing risk aversion which will generate a positive environment for riskier assets. The consensus expects some 23% EPS (earnings per share) growth for 2011 in the CEE region," comments Henning Esskuchen, Co-Head of CEE Equity Research.
"As an investment strategy, we recommend stock picking, rather than sector allocation. We prefer companies in cyclical sectors with dynamic sales development in the emerging markets and which will thus benefit from the economic growth in those regions. We also expect companies from the oil & gas sector to show a good performance in the first quarter. Overall, commodities should do fine, liquidity should keep prices inflate."" Erste Group analysts also recommend underweighting defensives such as telecoms and utilities in view of their clearly declining earnings expectations.
See the press release and full report in attached documents
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