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The Markets
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Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
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Go for pricing power stocks as inflation pressures mount, reckons Credit Suisse

Compass, Kingfisher, Croda, Smurfit Kappa and Weir Group all fit the bill for the broker

More than half of companies across Europe are planning to push prices over the next six months, according to a survey by Swiss broker Credit Suisse.

That is well up on the 37% that said they had put up prices in the past six months, the broker added, and well above any survey undertaken pre-the pandemic.

Importantly, 90% of respondents said they intend to pass through any price rises they face rather than 'materially sacrifice margins' to rising input costs, added the broker.

So far, issues relating to finding skilled labour have affected 37% of firms, but well over half expect this to become a problem in future while over 90% see supply chain problems persisting.

Almost 80% said they are expecting raw material costs to rise.

For investors, Credit Suisse says go for stocks with the ‘pricing power’ to alleviate the pressure.

In this context and among UK-listed stocks, it points to Compass (LON:CPG), Kingfisher (LON:KGF), Croda (LON:CRDA) , Smurfit Kappa (LON:SKG) and Weir Group (LON:WEIR).

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