Buy Signal on Euronext (ENX-FR)
Euronext is a € 9 Bn market cap and a pan-European exchange group operating regulated markets in Belgium, France, Ireland, the Netherlands, Norway, Portugal, and the United Kingdom. Euronext also operates non-regulated activities in 16 countries across the world. Euronext N.V. is listed in Paris, Amsterdam, Brussels and Lisbon since 2014. Euronext N.V. is the leading listing and trading venue in Europe with € 4.5 trillion combined market capitalization at the end of 2020, more than 1,500 listed companies and the largest liquidity pool in Europe.
Euronext N.V. provides advanced market data services and a range of indices and index solutions, including the AEX, CAC40, BEL 20, ISEQ 20 and PSI 20. Euronext N.V. offers clients innovative corporate and investors services. The company also operate Euronext FX in the United States and in Singapore and two spot FX matching engines in Tokyo and London.
The company has been consolidating the fragmented European markets and recently acquired the Oslo Stock Exchange and completes the acquisition of Borsa Italiana after a capital increase by way of rights offer of c. €1.8Bn.
The valuation looks compelling and the risk/reward attractive, after the rights issue while EPS growth is expected to reach 30% for a PER of 16x in 2022.
Short term catalyst : Borsa Italia integration.
This signal looks consistent with the European Financial Services in Major Bullish Trend.