Introduction

This selected guide highlights five small and mid-cap stocks offering exceptional investment potential for 2024. Immerse yourself in an analysis of their financial performance, growth prospects and market opportunities.

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Van de Velde (ISIN: BE0003839561)

Financial Performance:
Van de Velde, a luxury lingerie brand, recorded impressive direct-to-consumer sales growth of 11.1% in the first half of 2024, despite a 9.4% decline in wholesale revenues. Total sales amounted to 116.2 million euros.

Highlights:
The repositioning of the “Sarda” brand met with great success. However, poor weather conditions weighed on swimwear sales.

Profitability and valuation:
With a strong balance sheet and attractive dividend yield, Van de Velde is valued at a lower P/E ratio than its sector peers, making it a value buy.

Growth outlook:
Ongoing brand development and the expansion of e-commerce channels position Van de Velde for sustainable growth.

Target price:
Recommendation: Buy, with a target price of €40.

DEME (ISIN: BE0974413453)

Financial performance:
DEME’s strong order book supports robust revenue growth projections. Its diversified marine solutions are generating growing revenues from renewable energy projects.

Highlights:
DEME’s strategic partnership with BP in the Gulf of Oman is a major milestone, reflecting confidence in its renewable energy projects.

Debt and leverage:
Despite a significant expansion of its fleet, DEME has suspended new investments due to rising interest rates and high costs.

Potential catalysts:
Plans to exploit green hydrogen and ammonia production for export could transform DEME’s growth trajectory.

Target price:
Recommendation: Accumulate, with a target price of €190.

EVS (ISIN: BE0003820371)

Financial performance:
EVS achieved record sales in the first half of 2024, boosted by strong demand for its “Live Slow Motion” technology at major sporting events.

Highlights:
The company has diversified into live news and entertainment broadcasts, expanding its revenue streams.

Profitability and value enhancement:
With an efficient operating structure, EVS remains profitable and strategically positioned in its market.

Growth prospects:
Its solid position in the booming live entertainment sector makes it an attractive long-term investment.

Target price:
Recommendation: Buy, with a target price of €40.5.

Kinepolis (ISIN: BE0974274061)

Financial performance:
Despite the strikes in Hollywood, Kinepolis saw its ticket and concession revenues recover in mid-2024. Revenues per visitor increased to €17.4.

Highlights:
Upcoming blockbusters such as “Joker: Folie à Deux” and “Gladiator II” should bolster second-half performance.

Market sentiment:
The return of major outings and the increase in spending per visitor signal growing optimism for the Group’s profitability.

Target price:
Recommendation: Buy, with a target price of €50.

Melexis (ISIN: BE0165385973)

Financial performance:
Melexis’ half-year results confirm annual sales forecasts of €1 billion, with a profit margin in excess of 25%.

Highlights:
Its products are aimed at both electric (EV) and internal combustion (ICE) vehicles, guaranteeing resilience in a volatile automotive market.

Growth outlook:
With the increasing adoption of advanced automotive lighting and safety technologies, Melexis is well on the way to continued growth.

Target price:
Recommendation: Build, with a target price of €110.

Impact of Macroeconomic Factors :

Global uncertainties, including geopolitical tensions and the economic slowdown in China, present both challenges and opportunities. Each company’s robust strategy mitigates these risks, highlighting their resilience.

Total Addressable Market (TAM) :

From automotive semiconductors to renewable energy and luxury retail, these companies operate in high-growth sectors with broad TAMs.

Conclusions, price targets and stop loss :

• Van de Velde: Target price €40; Stop Loss €30
• DEME : Target price 190 € ; Stop Loss 160 €.
• EVS : Target price €40.5 ; Stop Loss €32
• Kinepolis: Target price €50; Stop Loss €40
• Melexis: Target price €110; Stop Loss €90

Find out more :

Discover more in-depth analysis of value and growth stocks poised for sustainable growth. Also explore our partner’s investment portfoliosfor additional opportunities.

Disclaimer:
This publication is for information purposes only and does not constitute financial advice or a solicitation to buy or sell securities. The data presented reflect the situation on September 1, 2024 and may no longer be current. Investors should carry out their own research or consult a financial advisor before making any investment decisions. We accept no liability for losses based on the information provided.