In the shadow of Linde and Air Liquide: AKTIONÄR top tip as unleashed

The industrial gases scene is dominated by the top trio of Linde, Air Liquide, and Air Products & Chemicals. The Italian company SOL was already featured as a top pick from the second tier in AKTIONÄR issue 16/2023. Since then, the small-cap stock has graced AKTIONÄR's recommendation list, which has recently gained significant momentum again.

SOL produces and supplies technical and medical gases such as carbon dioxide. The company also operates its homecare subsidiary Vivisol, which has recently enjoyed disproportionate growth. In the first quarter, the Italian company increased revenue in the division by 16.2 percent to €220.7 million. The gas specialist attributes this increase, among other things, to increasing prescriptions for patients. Vivisol offers oxygen, sleep apnea, and ventilation therapies for the home.

The other business areas also contributed to the group's growth of 12.7 percent to EUR 433.9 million. SOL has not yet published its results for the first quarter.

Nevertheless, analysts at Berenberg are taking the latest figures as an opportunity to revise their valuation model for SOL shares. Giovanni Selvetti raises the price target from €41.00 to €49.00, and the rating remains unchanged at "Buy."

"We conclude that SOL's defensive stance may necessitate further relative re-rating compared to its peers given the current macroeconomic environment," Selvetti said in his recent study.