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Garnry: Finding value outside European banks

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Saxo Bank's Head of Equity Strategy, Peter Garnry, has seen a  shift in the selection of top equity picks away from European banks, for the first time since June. The latest version of the quant model has started to favour a more diversified range of companies. For the first time since the most recent model was launched, there isn't a bank in the top five picks.
Daimler dominates the current list, to a large extent based on the firm's market share in China, the other choices include Arcelor Mittal and Ladbrokes. Peter adds that "Daimler is expanding its operating margin, thereby further encouraging investor sentiment. The last 12 months' EBITDA at €16.1 billion is just shy of the peak in 2006 at €17.5 billion signalling that global carmakers have almost fully recovered in terms of profitability.