Equity Analysis /
United Kingdom

GB : Healthcare - Overall - SMID was the winner in Q1, we’ve strong conviction in Q2

    Alistair Campbell
    Alistair Campbell

    Analyst - Healthcare

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    Graham Doyle
    Graham Doyle

    Analyst - Healthcare

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    CGS-CIMB
    9 April 2021
    Published byCGS-CIMB

    This week we take a moment for some self-reflection and discuss the Q1 sector performance, which stocks we had the most engagement with investors on and which stocks we think will perform best in Q2. The large cap sector has, as we expected, been a laggard, underperforming the market by 10%. That said, we don’t see a near-term end to the rotation into cyclicals and hence expect this underperformance to continue. By contrast the SMID sector has had a great start with 12 of our 14 stocks delivering positive performance. Futura Medical* (+261%), Sensyne Health (+54%) and Malin* (+40%) have been the stars. We expect a strong Q2 for SMID and think Futura* and Malin* again have potential as star performers whilst Clinigen should feature too. In terms of the most talked about stocks in our universe, Medica* and Genus* were by some margin the winners in Q1.