German industrials spotlight: Synchronicity
Over the past three years the weaker euro has boosted exports for the German industrials sector. If exports continue to prosper and industrial production (IP) growth cyclically recovers then we could see a ‘demand nirvana’ in the sector akin to conditions in 2010. The Ifo business confidence indicator, which rose sharply in February, lends credibility to this synopsis. Using our proprietary value and momentum screens, we highlight four companies we recently met that screen well and could potentially re-rate: Koenig & Bauer, Deufol, Homag Group and R Stahl.
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