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STOCKS NEWS EUROPE-Exane picks best buys for strong dollar
June 5, 2012 / 9:37 AM / 5 years ago

STOCKS NEWS EUROPE-Exane picks best buys for strong dollar

With the euro setting two-year lows versus the dollar this month, now could be a good time to seek out European companies which earn their money in the U.S. currency but pay their costs in the domestic one.

“Our strategists estimate that a 10 percent weakening in the euro adds about 3 percent to our European EBIT (earnings before interest and tax) forecast for the market, excluding financials,” Exane’s mid cap strategists say in a note, adding that in a low growth environment this becomes more material.

They pick the outperform-rated European mid-caps which are most likely to benefit: stationery group Bic, Spanish food company Ebro, broadcast equipment maker EVS, ad agency Havas, Interpump , pollster Ipsos, graphite specialist Mersen, mail room equipment supplier Neopost, battery maker Saft Group, call-centre operator Teleperformance, video games publisher Ubisoft and Viscofan, a manufacturer of artificial casings for the meat industry.

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