The 2014 All-Europe Research Team: Medical Technologies & Services, No. 3: Edward Ridley-Day & team

Seizing the No. 3 slot for a third year in a row is the London-based Bank of America Merrill Lynch duo captained byEdward Ridley-Day, which provides “pragmatic analysis of facts and numbers without getting trapped too much into technological promises,” according to one advocate. Among the companies in the researchers’ coverage universe of 15 names, Spain’s Grifols is a particular favorite. The global manufacturer of plasma-derived drugs and other biopharmaceuticals offers strong secular growth at a reasonable valuation, they contend. “We are positive on the fundamentals of the plasma market, a high-single-digit growth market supported by low penetration in developed markets and rapid growth in emerging-markets demand,” explains Ridley-Day. The pair expects further margin expansion supported by cost synergies from the company’s 2011 acquisition of U.S. rival Talecris Biotherapeutics Holdings Corp., combined with underlying improvements in plasma procurement and product mix. Going forward, the analysts are positive on this group, in general. “The sector derated relative to the European market in 2013,” he notes, “with risk assets outperforming on the improving macro outlook and central bank liquidity.” He cautions, however, that these companies “may see increased investor focus as global stock markets consolidate, supported by the sector’s secular growth attributes and strong balance sheets.”