< The 2016 All-Europe Research Team

Total Appearances: 5

Team Debut: 2007

Exane BNP Paribas researcher Luca Solca pilots his crew to its third consecutive first-place finish. Working out of Geneva, he and two associates in Milan report on 14 stocks in this space. “What I really appreciate about their work is their differentiated approach versus the consensus,” declares one portfolio manager. “They look at the market drivers and publish very interesting sector research going deeply in the topic for luxury goods.” In general, the analysts maintain a cautious outlook. These luxury names “are at a difficult juncture,” facing muted gross domestic product growth, especially in emerging markets, says Solca, 52. What’s more, management teams within the companies are largely still adjusting to this new environment, after years of the sector’s outperforming. “Lean on the side of prudence,” Solca advises, recommending that clients favor “self-help stories with a high probability of success and little market recognition.” His squad’s favorite example of such a player is Kering, a French holding company whose design brands include Balenciaga, Gucci, Saint Laurent and Alexander McQueen. After a few tough years for Gucci, the researchers expect a turnaround in the first half of 2016, representing a potential boost to the company as a whole. In addition, performance could be spurred by a divestiture of the Puma brand, which they believe is likely to occur this year.