Matteo Ghilotti, Stefano Lustig & team, Equita S.I.M.
After two years in first place, the 11-member Equita S.I.M. squad co-captained by Matteo Ghilotti and Stefano Lustig slips back to second but continues to earn acclaim for its work. “They do prolific research and a really good job covering the midcap Italian companies,” observes one ally. Headquartered in Milan, the analysts follow some 120 Italian stocks and expect to broaden their coverage this year with the addition of pan-European names. The team expresses some optimism for Italy’s economic performance this year, if the country shows “tangible results” in curbing deficits, Lustig says. In the meantime, they are urging investors to overweight capital goods companies, thanks largely to their global markets exposure, and underweight utilities vulnerable to “an increase in interest rates and a poor domestic economy,” he adds. Top picks include Turin-based Fiat Industrial, on the strength of its balance sheet and growth prospects following last year’s demerger from its automaking parent; and medical-device manufacturer Sorin Group of Milan, on robust sales in overseas markets.