Star performers stumble: buy the dip?
STOXX 600 down 0.1%
Eyes on US CPI this week
Wall St futures edge up
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STAR PERFORMERS STUMBLE: BUY THE DIP?
Europe's star performers have lost some shine recently. While the broader STOXX 600 .STOXX has reached new peaks during the Q1 reporting season, the likes of Novo Nordisk NOVOb.CO, Ferrari RACE.MI and ASML ASML.AS have been moving sideways despite delivering strong earnings.
This suggests the rally is finally broadening out to other parts of the market that have been left behind. Indeed, the stars might be aligning for the laggards, but it also looks like that those who missed out on the high-flyers' run are getting a rare chance to jump in at more reasonable prices.
Take Ferrari, for example, where Canadian bank RBC scents a "Buy the Dip" opportunity.
"Despite posting a strong Q1 beat, Ferrari shares moved lower on some understandable, and in some cases, misunderstood reasoning. We acknowledge that there are few near-term catalysts beyond guidance raises and those might already be priced in. But we reiterate our long-term investment thesis on the stock," it wrote on Friday, affirming its buy rating.
Over the past 2 months, Ferrari RACE.MI shares have lost almost 3% over, with valuations coming off peaks, while the STOXX .STOXX is up 4.5%. The stock is still up 23% YTD.
For more reading on this trend:
GRAPHIC-Europe's laggard stocks sparkle as superstars hit pause Click here
LIVE MARKETS-ASML: a buying opportunity? Click here
(Danilo Masoni)
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FOR MONDAY'S OTHER LIVE MARKETS POSTS:
STOXX OFF TO DULL START CLICK HERE
EUROPEAN FUTURES LITTLE CHANGED CLICK HERE
WITH US INFLATION, EVERY DECIMAL COUNTS CLICK HERE
Ferrari blog https://tmsnrt.rs/3WBrNe4
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