www.ubs.com/investmentresearch This report has been prepared by UBS AG London Branch. ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 20. UBS does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Global Research 6 September 2019 BLT: Quantitative Monographs Fundamental and quantitative ideas ahead of the 2019 BLT Conference… 17th edition of our BLT Quantitative Monographs In the latest edition of our BLT Quant screen, which uses an aggregate quant score to assess how attractive stocks look from a quant perspective, the analysis indicates that Business Services continues to rank highest on a sector level, led by Adecco (Top 3). In contrast, Transport and Leisure continue to lag having the most stocks in the bottom. The Leisure average score has improved but remains negative. We review largest movers in quant score over the last months The aggregate score allows us to rank all the BLT stocks, equally weighing value, quality, momentum and risk investment styles to create the score. Over the last months in Support Services, we highlight Adecco which we rate Buy and ranks top 3. In Leisure, we highlight Compass which continues to see improvement. In Transport, Wizz Air has seen strong improvement while Ryanair and easyJet continue to see deterioration in their quant score. A number of new entrants in the top ten and bottom ten Compared to the previous month, IAG, Wizz, Intertek and Atlantia are new entrants to the top ten by quant score, while PageGroup, Bureau Veritas, Electrocomponents and SGS no longer appear in the top ten. In the bottom ten, Getlink, Accor and AFK are the new entrants, while Fraport, Lufthansa and Prosegur no longer appear in the bottom ten. A number of stocks where quants and fundamentals align We highlight Adecco (Buy, PT CHF61) and Bureau Veritas (Buy, PT €24) in Business Services, and IAG (Buy, PT 705p) and Flughafen Zürich (Sell, CHF165) in Transport. In Leisure, we highlight Compass (Buy, PT £22.55) and TUI (Sell, 740p). A number of these companies will be attending the UBS BLT Conference 2019 from 9-11th September. Figure 1: BLT Quant Score ranking: Top and bottom 5 Source: UBS Quantitative Research and UBS Research. All data is as of 30th Aug 2019. The rankings in this report are based on UBS's proprietary quantitative models. These rankings are made independently of the recommendations of UBS's fundamental equity research analysts. CompassBuyeasyJetNeutralIAGBuyRyanairBuyAdeccoBuyFlutter EntertainmentNeutralIHGSellRestaurant GroupNeutralWizz AirNeutralWilliam HillBuyTop 5Bottom 5Equities Global Quantitative Jarrod Castle, CFA Analy...
