Bernstein has compiled a list of eight European “AI risk-proof” companies that we believe are structurally resilient to recent market fluctuations and able to outperform their peers thanks to the depth of their business models. The U.S. logistics, software, real estate, and financial sectors have been hit hard by the “AI fear trade” in recent weeks. The main impetus for the sale was Anthropic’s launch of a new plugin for Claude’s collaborative agents, which is seen as a potential rival to established software-as-a-service companies that offer legal, sales and data analytics services. Mr. Bernstein’s list of top performers includes low-cost airlines, logistics stocks, food and beverage companies, real estate investment trusts, and more. The paper said European low-cost carrier EasyJet benefits from a core moat based on key tangible strengths, such as slots at busy airports and the size of its fleet. Analysts said of the London-listed airline, “AI is a tool that will increase airline operational efficiency and enhance rather than undermine existing airlines’ cost advantages.” EZJ-GB YTD Mountain Easy Jet. Bernstein said Zurich Airport, which owns and operates Zurich Airport, faces “mild pressure on business travel in the long term” if AI “significantly eliminates” white-collar roles, but otherwise AI does not pose a major risk to core airport operations. The Feb. 13 note by Bernstein analysts led by Alexander Peterk also mentioned Dutch construction services business Royal BAM Group, logistics company Bunzul, French publisher of board games, card games and tabletop role-playing games Asmodee, and FTSE 250-listed food and beverage product maker Princes Group. “AI tools can’t replace the fundamental appeal of physical, tactile board games that define Asmodee’s value proposition. But AI can help improve development and productivity,” says Peterc. “BAM Groep operates in a sector where business execution, reputation and customer relationships form the core of the competitive moat. AI is only used as an industry-wide tool (schedule and risk analysis, predictive safety) and is not a threat to the competitive moat.” BAMNB-NL YTD Mountain Royal BAM Group. Meanwhile, analysts point to Madrid-listed real estate investment trust Marlin Properties as a notable beneficiary of AI, while Enagas, which operates Spain’s gas grid, has been largely spared from the disruption. “[Merlin]is transforming from a traditional real estate business into a leading data center owner and operator with the potential to expand to more than half of its overall portfolio,” they wrote. “Enagas has seen minimal structural impact from AI, as its role as a regulated electricity transmission system operator in Spain means that AI is only used as an incremental industry-wide tool rather than a transformative force. ” Ben Ritchie, head of developed market equities at Aberdeen, told CNBC on Monday that there has been a degree of randomness in recent stock declines as investors try to discern winners and losers from “rapidly changing” technological developments. “It’s a complex and very fast-moving situation for investors,” Ritchie told CNBC’s “European Early Edition,” adding that many companies hit by the turmoil still have “very good underlying performance.” He said there was a buying opportunity, adding: “We need to go back to the logic we were applying at the beginning, think about the barriers to entry in the original investment case, and ask, ‘Are these things going to hold?'” Highlighting software provider Relx and consumer finance and data provider Experian, two names that have seen significant downgrades in recent weeks, Ritchie suggested barriers to entry and investment opportunities remain, but warned that it may take quarters or even years for such companies to show resilience. “I think that’s the frustration investors are facing: companies that are doing well today, but there are questions about their long-term prospects,” he added.
