Small and Medium Summits: Portzamparc condemnations for the second half – 07/26/2022 at 09:50

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At the beginning of July, the Office of Analysis presented its list of indictments for the second half of the year. Not to be confused with the “Big Five”, choosing 5 values ​​updated every month, this list is updated every six months. A chance to see the stocks that have convinced Portzamparc of their medium-term potential. Review the details.

Portzamparc begins making this list on a stubborn note: The period remains complex for the asset class that makes up the small and mid-caps. In a context of significant uncertainty, investors have abandoned the sector, which is particularly reflected by the drop in liquidity since the spring, “particularly in CAC Small,” the analysis desk explains.

Portzamparc takes the opportunity to evaluate the introductions of the first half. Not surprisingly, there were fewer transactions than the previous year, but about ten companies entered the market (Icape, Lhyfe, Smaio, etc.) with a fairly mixed performance at the moment.

Portzamparc’s convictions in H1 held up well

In the first half, the Office of Research’s list of convictions held up better than CAC Mid & Small, dropping just 9.7% when the index hit 14.7% (data as of July 6). In this list, we found, in descending order of performance: Groupe Gorgé (+31.2%), GTT, Eramet, Clasquin, Spie, SII, Lisi, Fountaine Pajot, Dontnod, Kalray and Metabolic Explorer (-50.4%).

In the second half, Portzamparc decided to renew some of these players: it keeps Eramet, Lisi, Fountaine Pajot and Kalray and decides to add Esker, Carmat, Ipsos and Lumibird.

Regarding these new recruits, you buy Porzamparc from Esker at a target price of €191. He believes that the software publisher’s fundamentals are still strong and that the current valuation finally offers an entry point as the price has been divided by three since the top.

In terms of kermes, the target price is €31.70 while the medical need remains very high (150,000 hearts per year in Europe and the US) for a heart prosthesis developed by medtech. Portzamparc notes “excellent feedback from clinicians on first sales.” Be warned, however, that the resumption of implants in the fourth quarter is subject to a green light from approved bodies, while the quality of prosthetic production remains the biggest challenge for the group to master.

Lumibird is not very sensitive to the current context

Ipsos price target is €60.80. The Strategic Plan 2022-2025 is compelling with an expected acceleration in organic growth and a structural increase in margins (operating margin expected to be more than 13% in 2025) from the study specialist separately. Portzamparc sees several growth drivers both geographically (US) and sectoral (TMT, health, public sector). But beware of the context of wage inflation and a “potential slowdown in mass consumption in a deteriorating economic context.”

Read also / Lumibird French (Breton) laser

The last entry in this list of beliefs: Lumibird. The current context hardly punishes the laser specialist, he moreover confirmed his predictions for 2023 and his assessment is reasonable. Enough to justify the target price of 24 euros. The bureau specifically states that the value is trading at 15.8 times the enterprise value/expected 2022 operating profit (EV/Ebit) ratio, versus 18 times on average. Above all, in this segment, NKT Photonics, the least profitable, was purchased at 30 times the EV/Ebit ratio by Japan’s Hammmatsu.

How will this list behave in the second half? The future will tell, Portzamparc will do the evaluation anyway next December.

Laurent Grassin (

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