TopGun^® Press

Brendan Wood International Investor Conviction Intel – Global Industrials – Nov 2023

November 3rd, 2023 by TopGun Press

Below are some of the most topical industrial stocks in the BWI Shareholder Confidence Index based on our daily chats with global investors. Below is a link to the Investor Conviction Intel on RTX Corporation.

Renault SA

Renault has been one of the most talked about turnaround names within the automotive industry. Since the appointment of Luca de Meo as CEO in 2020, investors have warmed up to his execution of strategy and investor presentations. Many investors feel that Renault is caught in a difficult automotive environment, during which de Meo has managed to build investor confidence in not only being a car enthusiast but in delivering consistent execution of Renault’s strategy. These investors are citing de Meo as being fully competent on the marketing side of things. Although investors vote for Renault as a turnaround story in motion, they acknowledge that Renault has a checkered past with historical execution issues that are going to take skeptical investors longer to warm up to. Also, Renault’s EV strategy and scale will be under scrutiny as it pushes forward in this difficult environment to attract new investors.

Siemens AG

Schneider Electric currently ranks higher on investor ownership votes vs. Siemens. Investors favor Schneider Electric’s electrification and energy-efficient strategy but view Siemens as having similar exposure and potentially, is a more attractive investment alternative. Some investors feel that if Siemens were to separate its business divisions segment from its train segment, it would create more demand for ownership. Leaving one side of Siemens AG’s business portfolio with parts such as electrification, electric products, and business automation. Digitalization, energy efficiency and automotive continue to be frequently discussed topics within the multi-industry space. Investors with a longer-term outlook, express favourability towards higher EV production and electrification. Long-term investors see rising energy and inflating labor costs to continue, and will drive the need for energy efficiency along with increased automation.

RTX Corporation

RTX Investor Confidence ratings dropped in 3Q. Investors have increased concerns with reliability issues with the company’s aerospace manufacturing process rather than reliability issues with the RTX’s engine itself. Investors are questioning management execution with some investors voting for significant leadership change at RTX in order to restore confidence in the name. For more constructive investors, RTX is a wait-and-see story. These investors may be more sympathetic to management giving them credit for prioritizing safety. Also, these investors feel that RTX’s past deals are not being truly reflected in its current valuation. Click here for the full report on RTX Corporation

RB Global Inc

RB Global Inc has been a controversial name dating back to its acquisition of IAA. The IAA deal raised a lot of questions as to the timing of the deal, synergies, and the true reason for management’s pursuit of the asset. Regardless of a mixed investor appetite for the IAA deal, the departure of the CEO and CFO made the story even more complex. Investors acknowledge that a stronger-than-average stomach is needed to own RB Global. Some give the board credit for releasing the CEO and CFO while others view the board as more reactive to the situation. Investors will be paying close attention to newly appointed CEO, Jim Kessler and his execution of the current strategy, and how the integration of IAA plays out over time.

Largest Changes in Investor “Commitment to Own” Global Industrials (Y/E 3Q2023 vs. Y/E 2Q2023):

Aston Martin +15.6%
Voestalpine AG +14.6%
General Electric Company +8.6%
Rolls-Royce Group PLC +7.4%

Spirit AeroSystems Holdings -10.7%
Magellan Aerospace Corporation -9.8%
Southwest Airlines -9.5%
Kratos Defense & Security Solutions Inc -9.3%

Click here for the Investor Conviction Intel for Pipelines & Utilities October 2023

Brendan Wood International (BWI) serves a dual clientele of world leading investors and their corporate investment targets as well as broker dealers who provide research, sales and trading services to the investment community. Big cap companies looking for comprehensive investor confidence data on their organizations are likely to discover that Brendan Wood partners consult with their investors non stop year round. Investors depend on BWI to quantify the demand side of the investment industry across 1400 names worldwide, including the name by name research sales and trading professionals who influence investor demand.

About Brendan Wood International:

Brendan Wood International (BWI), formed in 1970, is a private advisory group which originates performance investigation programs in the capital markets. Brendan Wood Partners debrief large institutional investors worldwide on a daily basis. There are 2000+ live consultations with professionals overseeing +/- $55 trillion invested in the +/- 1400 big cap companies on the BWI Index. Relying on its real time performance intelligence, BWI advises public companies, institutional and activist investors, investment banks and broker dealers on strategy, performance and recruitment of TopGun talent. The firm’s partners have formally presented at 1000+ C level strategy meetings and corporate off-sites in fifty cities. Brendan Wood founded the exclusive TopGun Club, a performance based institution.

Disclaimer:

We wish to emphasize that all reports, evaluations and assessments contained herein, represent Brendan Wood International’s subjective judgment and opinions, based on our years of experience and on information obtained by us in the course of our research. Much of the factual information contained in the reports has been obtained by us from third parties on whose responses we have relied in good faith, independent verification by Brendan Wood International being, under the circumstances, impossible. While we believe that you will find our reports to be an invaluable tool in formulating your own strategies and judgments, the foregoing should be borne in mind. This report is not meant as investment advice and should not be interpreted as advising on the value of a company’s securities, the advisability of investing in, purchasing or selling any company’s securities or any other conclusion relating to investment/divestiture of a company’s securities. Finally, this report is not intended as an offer or solicitation for the purchase or sale of any company’s securities.