< The 2014 All-Europe Research Team

Fabrice Théveneau & team
Société Générale
First-place appearances: 0

Total appearances: 16

Team debut: 1993

Slipping one spot to No. 3 are Fabrice Théveneau and his Paris-based team of 25 at Société Générale. Nevertheless, with a sector portfolio of more than 150 stocks, the researchers maintain a loyal following for their “broad coverage of French stocks of course but also Europe, some very experienced analysts — especially in the media and auto sectors — and good calls on oil services,” in the words of one investor. “They also provide me with excellent service and access to corporates.” Best bullish ideas for 2014, Théveneau reports, include metals and mining company ArcelorMittal, which is headquartered in Luxembourg and has significant operations in France. Recovery in European economies and “signs that overcapacity is being tackled in China,” he notes, will benefit the world’s largest steel company. Indeed, the team expects margins over raw materials costs to increase over the next three years, in line with elevated capacity use among steelmakers. At the same time, rising costs of iron ore and coking coal ought to justify so-called cost-pushed rises in steel prices. Finally, management is reaping positive results from such aggressive cost-saving initiatives as the restructuring of its Flat Carbon Europe division and showed discipline and innovation, Théveneau says, in its “highly accretive joint acquisition” (with Japan’s Nippon Steel & Sumitomo Metal Corp.) of German rival ThyssenKrupp’s U.S. operations in December. The analysts’ target price of €18 for the company’s stock is 38.8 percent above its trading value at year-end 2013.

See also Fabrice Théveneau's profile in the 2013 All-Europe Research Team.