Where next for markets in 2022?
In our view, if COVID is not on the way out, we are just going to have to live with it now and it will have less and less impact on economic forecasts going forward. Instead, the bigger issues for investors to deal with in 2022 are cost inflation and staff shortages for business (which are already hitting earnings momentum), energy cost inflation and higher taxes hitting the consumer wallet, and markets that start from very elevated valuation multiples compared with historic levels.
This all leads us to feel that a certain degree of caution and defensiveness is the order of the day. So, with this possible backdrop in mind, we are presenting our ‘11 for 22’. As usual, we have looked for the individual companies within our coverage that potentially offer strong upside, be it from organic growth, restructuring, M&A, the trend towards ESG or promising emerging therapies. Happy New Year!
11 for 22: Investment ideas for 2022
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Gemfields - Maiden dividend expected in 1Q21
H&T - Polishing up those golden balls
IOG - It’s a gas, gas, gas!
Lok’nStore - Structural growth, valuation discount and inflation hedge
Mothercare - Reborn
Quartix Technologies - Growth to accelerate post-pandemic
Somero Enterprises - Going flat out!
Surface Transforms - Braking into profitability
Synairgen - Phase III data in early 2022 – transformational event
Tracsis - Fast track in FY22
Tremor - Prime time viewing in 2022