Sep 6, 2023
On Wednesday, we added to our positions in ASML Holding (ASML) and Analog Devices (ADI) while trimming our position in LVMH Louis Vuitton Moet Hennessy (LVMUY) on behalf of clients in our Offshore strategy.
Let’s dive in.
ASML has always traded at a premium compared to its peers but its recent price action has allowed us to add to our position at its narrowest valuation premium in recent history. A solid earnings report and signs that end market demand is at or near the bottom lead us to believe that the company can continue to outperform peers and the Offshore benchmark over the medium term.
Expectations for Analog Devices (ADI) have decreased over the last several quarters and much of the tempered guidance has been priced into the stock. Although the company’s largest end markets are just now feeling the impacts of the economic slowdown, we believe management has effectively communicated this and has positioned the company to emerge from the other side stronger than before. Currently trading at an attractive trough valuation multiple, we’ve used the recent price weakness as an opportunity to add with conviction.
Bernard Arnault’s LVMH has grown into one of the highest quality companies in the world but that title comes with high expectations. Despite the company reporting strong earnings, the stock suffered because it wasn’t the typical beat and raise that investors have become accustomed to. Due to the combination of a slowing US consumer and a strong run over the last two years, we elected to trim our positioning here.
The results of these trades have increased our net exposure in Offshore slightly. As always, let us know if you have any questions about the recent trades; we’re happy to assist.
– Your Titan Team
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