Euronext NV added to UBS’ ’30 for 30’ global focus equity list

Investing.com -- UBS has added Euronext (EPA:ENX) NV to its "30 for 30" global equity focus list, replacing Bank Mandiri (JK:BMRI).

The investment bank believes that Euronext is positioned to benefit from "a pick-up in European trading volumes as well as volatility."

“Further, we think that Euronext has a number of attractive organic revenue growth initiatives for the coming years. We think that today’s valuation is attractive,” strategists Sacha Holderegger and Hartmut Issel added.

Euronext, a French-based exchange group, operates several European stock exchanges, including those in Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo, and Paris.

The company’s recent financial performance has been strong, with adjusted EBITDA soaring by 15.1% in 3Q24.

Euronext is on track to meet its targets of over 5% revenue and EBITDA growth between 2023 and 2027, supported by its strategic plan and a 300 million euro share buyback program.

“The continued rise in more sustainable revenue streams should allow Euronext to close the valuation gap to peers. Major risks to our view include exposure to market volatility and increased regulation,” UBS said.

UBS removed Bank Mandiri from the list, citing continued margin pressure due to falling interest rates in Indonesia. The bank no longer met the firm’s criteria for inclusion as UBS identified better opportunities elsewhere.

Other companies on UBS’ "30 for 30" list include Microsoft (NASDAQ:MSFT), Alibaba (NYSE:BABA), Meta Platforms (NASDAQ:META), and Goldman Sachs Group (NYSE:GS).

These companies are part of UBS’ broader investment theme that focuses on technological disruptors in greentech, fintech, healthtech, and enabling technologies, which the firm believes will outperform the broader market in the long term.

“In our view, these are leading disruptors in sectors undergoing technological transformation, which should lead to consequential and enduring impact,” the report states.