EnterNext/Morningstar partnership: Boosting the Tech sector on the exchange
Financial analysis for SMEs
Pursuing its action plan to forge stronger ties between SMEs and investors since its creation in 2013, EnterNext launched two new incentive programmes aiming to encourage equity research into mid-size companies:
- A significant trading fee reduction for brokers that publish financial analysis on a regular basis on SMEs
- A partnership with Morningstar to provide research analysis on the 333 Small & Midcaps listed Tech companies
Programme targeting brokers covering mid-caps
The aim of this initiative is to support brokers’ financial analysis work on SMEs via a fee incentive scheme:
- Exemption from order fees on all stocks covered
- Discount on trading fees on all stocks covered:
- a 30% discount for brokers covering up to 75 stocks
- a 50% discount for brokers covering more than 75 stocks
Morningstar’s equity reports on the Tech sector
The initiative focuses on the 320 Tech Small & Mid Caps listed on Euronext’s four European markets - Amsterdam, Brussels, Lisbon and Paris.
This initiative aims to increase the visibility of the sector on a pan-European level and broaden the base of potential investors.
These reports are freely available to investors and can be used by issuers on their support of financial communication.
The reports will be updated quarterly.
Quarterly sector notes on cleantech, digital and life sciences.
Every quarter, Morningstar analysts realize a sector note on the 3 major families of the Tech sector. These reports include fundamental analysis on a trending investment thematic. They also include a quantitative review of all the values covered to facilitate the search for new ideas to investors.
Quantitative rating by star
The Morningstar Rating for stocks identifies stocks trading at a discount or premium to their intrinsic worth—or fair value estimate, in Morningstar terminology. Five-star stocks sell for the biggest risk-adjusted discount to their fair values, whereas 1-star stocks trade at premiums to their intrinsic worth.
Four key components drive the Morningstar rating:
- The assessment of the firm’s economic moat
- The estimate of the stock’s fair value
- The uncertainty around that fair value estimate
- The current market price
This process ultimately culminates in a single-point star rating. Underlying this rating is a fundamentally focused methodology and a robust, standardized set of procedures and core valuation tools used by Morningstar’s equity analysts.
A new free screening tool dedicated to investors, available in late July 2016 on MorningstarPro.fr
The ‘Stock Screener’ will increase the visibility of the Tech SMEs listed on our markets by offering investors a helping tool for picking stocks. This unique screening tool offering this level of information on the Tech listed companies in Europe will be available on Morningstarpro.fr.
Professional investors will have the opportunity to organize their searches using filters such as the sector, economic performance or the valuation elements.