UBS has named a raft of European small and midcap stocks it says are staging a "comeback in the making" this year. Smaller European stocks returned 0.5% in July and August, outperforming the 1.7% contraction logged by large caps in the same period, the Swiss investment bank noted. "We think weakness in smallcaps has been largely related to factors including liquidity concerns, inflation, macro concerns and sector weights," UBS' team of analysts detailed in a Sept. 4 note.
The analysts have a buy call on the stock at a price target 78 euro, giving it a 27.5% upside from its 61.16 euro close on Sept. 5. The bank likes Hugo Boss too, at price target of 69.32 euro, a 28.4% upside from its Sept. 5 close of 69.32 euro. It noted fashion label's year-to-date return of 28.3%. New on the radar UBS' list has also undergone a refresh to include three new stocks: Galenica , SIG Group and Talgo.