< The 2015 All-Europe Research Team
Robert Plant & team
J.P. Morgan Cazenove
First-Place Appearances: 2
Total Appearances: 3
Team Debut: 2013
J.P. Morgan Cazenove repeats in first place, thanks in large part to its analysts’ comprehensive coverage and quality service. Headquartered in London, Robert Plant and his teammate “always make a written update on any event small or big,” offers one portfolio manager. Adds another booster, “Their reports are well structured, and the level of detail in their analyses is outstanding.” Investors also value the duo’s European business and employment services conference convened in the U.K. capital every May, with optional on-site company visits as a follow-up. The researchers track 24 companies, an increase of two over the past year, and are generally upbeat on the sector. “We believe it can outperform in a low-growth economic environment,” says Plant. “In particular, business services companies help public sector and corporate customers to reduce costs, and we think this is appealing when budgets are under pressure.” Their favorite name is Babcock International Group of the U.K., an engineering support services giant. As the largest supplier of support services to Britain’s Ministry of Defense, the company “will benefit from continued cost savings by the U.K. government, especially in the defense sector,” the crew chief explains, “and the further internationalization of its business.” Babcock’s shares closed January at 1,006p, and the researchers project a rise to 1,500p. They also look favorably on Irish diversified services provider DCC and have since November 2013 encouraged investors to overweight its shares, anticipating that management would increase mergers and acquisitions in 2014. As Plant notes, year-over-year spending on M&A activity did indeed rise, by £64 million ($99 million), to £148 million. The stock price has done likewise, leaping 29.8 percent by the end of last month, to 3,528p, and besting the sector by 32.7 percentage points.