< The 2016 All-Europe Research Team
Robert Plant
& team
J.P. Morgan Cazenove
First-Place Appearances: 3
Total Appearances: 4
Team Debut: 2013
J.P. Morgan Cazenove’s troupe led by 41-year-old Robert Plant holds the No. 1 position for a third straight year. Three analysts working out of London track 26 regional business and employment services companies for the firm and impress one portfolio manager as “very approachable, hugely knowledgeable, always willing to help — just light years ahead of the competition.” Another client especially values their “world-class models and regular notes.” The trio is positive on the sector, believing it well positioned in a low-growth environment given outsourcing and consolidation opportunities and relatively limited exposure to natural resources and emerging markets. “Among the companies we follow, we think Babcock [International Group], Capita and Serco [Group] could benefit in 2016 as the U.K. government steps up the pace of private sector outsourcing. Babcock is a current top pick,” says Plant, 41. He and his associates reiterated their overweight position on the U.K.-based multinational in August, and although its stock had advanced less than 1 percent by mid-January, to 944.50p, its European peers had fallen 5.3 percent. They peg Babcock at 1,427p. Also favored is Cerved Information Solutions, Italy’s leading credit bureau, which they have recommended overweighting since August 2014. “Cerved has benefited from the recovery in the Italian economy, an improvement in regulation and an increase in nonperforming loans, for which it provides administration services,” the crew chief explains. By the middle of last month, its shares had soared 55.9 percent, to €7.17, outpacing the regional sector by 58 percentage points.