< The 2014 All-Europe Research Team

Fraser Hill & team
Bank of America Merrill Lynch
First-place appearances: 3

Total appearances: 19

Team debut: 1993

Unranked last year, Bank of America Merrill Lynch rejoins the ranking in third place. Fraser Hill’s London-based trio maintains a coverage universe of 16 stocks — and growing. The team has been cautious, particularly on Swedish truck and bus manufacturer Volvo. Hill and his colleagues downgraded the stock from neutral in January 2013, correctly anticipating a slowdown in earnings growth. Indeed, management in October reported basic earnings per share of Skr1.53 for the first nine months of the year, down from Skr5.10 during the year-earlier period. More recently, they advised clients that pricing pressure in truck markets is an additional concern. The stock went on to slip by 6.6 percent through December, to Skr84.50, even as the sector leaped 32 percent. The researchers are, however, bullish about France’s Renault, thanks in part to its abundant cash and low debt levels. Rated buy throughout 2013, the automaker’s stock climbed 48.5 percent last year, to €58.45, against the sector’s 34.7 percent gain. “These are analysts to watch,” avers one fund manager in London.