EOT European Opportunities Trust Plc

European Opportunities Trust - Update from QuotedData

29^th October 2024

Geared to growth

European Opportunities Trust (EOT), the most growth-focused of its peers, has posted decent absolute (positive) returns during the last couple of years but has been held back by its strong growth focus in an environment where inflation has been more stubborn than anticipated. The associated higher interest rates tend to impact growth stocks more heavily as they tend to have a larger proportion of their value discounted from some point in the future.

There are signs that this is now changing and, if the outlook for the economy deteriorates, EOT's focus on more resilient business-to-business (B2B) companies should be an additional benefit, particularly if previously robust consumer spending continues to show signs of faltering.

In the meantime, the manager has been taking advantage of negative sentiment towards Europe and periods of heightened uncertainty to add to the portfolio at attractive valuations. The board has been very active in buying back shares, enhancing the net asset value of the trust (NAV), but EOT's low double-digit discount also offers an opportunity.

Full Research:

https://quoteddata.com/research/european-opportunities-trust-geared-to-growth-qd/

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