The 2015 All-Europe Research Team: Luxury Goods, No. 1: Luca Solca & team
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The 2015 All-Europe Research Team: Luxury Goods, No. 1: Luca Solca & team

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Luca Solca and his Exane BNP Paribas trio take this crown for a second consecutive year.

< The 2015 All-Europe Research Team

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Luca Solca & team

Exane BNP Paribas

First-Place Appearances: 2


Total Appearances: 4


Team Debut: 2007


Luca Solca and his Exane BNP Paribas trio take this crown for a second consecutive year. “Solca is Mr. Luxury himself,” cheers one investor. “It seems that he knows everyone and everything in that sector.” The team leader, who works out of Geneva, and his London-based associates consider the region’s luxury goods names to be “fallen angels,” the 51-year-old researcher says, thanks to their recent sputtering after years of outperformance. Indeed, from their multiyear low point in October 2011 through their mid-September 2013 apex, the shares bolted 84.3 percent and beat Europe’s broad market by 42.9 percentage points. Since then, however, they have changed course, losing 7 percent by the end of last month and trailing the wider market by 16.8 percentage points. Headwinds include market saturation in such emerging markets as China, says Luca, where the opportunity to drive growth by opening new stores is reduced, forcing companies to concentrate on efficient operations and cash allocation. As a result, Exane’s analysts favor names that have the ability to improve returns on invested capital. Their favorites by this metric include France’s LVMH Moët Hennessy Louis Vuitton, whose products include champagne, cognac, cosmetics and perfume, among other goods. They upgraded LVHM from neutral to buy in early September, and through last month the stock had climbed 4.6 percent, to €143.50, outperforming the sector by 6.9 percentage points.



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