< The 2014 All-Europe Research Team

Peter Karlsson & team
Handelsbanken Capital Markets
First-place appearances: 0

Total appearances: 11

Team debut: 1993

Handelsbanken Capital Markets holds on to third place. Peter Karlsson and his 35-member crew in Stockholm stand out for their “cutting-edge macro research and local knowledge,” in the words of one money manager. “They’re also the best at covering the Scandinavian banks and insurance stocks.” Over the past year the analysts have trimmed the number of names they track by 20, to 230. Zurich-based ABB will be a leading performer in their portfolio for the year ahead, they contend, in part because the global provider of automation and power technologies should benefit from continued demand for its services in Africa, developing Asia and the Middle East. “Globalization and urbanization will propel orders and margins to higher levels,” reckons Karlsson. ABB’s American depositary receipts were trading at $26.56 in late December; the researchers’ target price is $31.50. The team also recommends buying auto-parts manufacturer Autoliv, on expectations that it will continue to profit from increasing exposure to the growing market for active and passive car-safety products. The Stockholm-based supplier’s New York–listed shares closed the year at $91.80, and Handelsbanken forecasts a 19.8 percent upside.

See also Peter Karlsson's profile in the 2013 All-Europe Research Team and 2012 All-Europe Research Team.