Serge Ferrari (SEFER FP) France
French small caps expert Julien Onillon believes investors are massively underestimating SEFER’s earnings growth prospects. This materials manufacturer is in the midst of a spectacular turnaround (1H21 operating profit more than doubled vs. 2019) thanks to strong growth in the solar protection, marine and furniture markets. In addition, two important acquisitions (Verseidag in Germany and F.I.T in Taiwan) should enable SEFER to accelerate growth outside Europe. The stock is valued at barely 5x this year’s EBITDA and Julien forecasts EPS growth of 50% between 2021 and 2023. TP €15.00 (~65% upside).