Jefferies predicts stocks that will profit from the global vaccine rollout

Published Wed, Apr 7 20212:15 AM EDT

Lucy Handley @in/lucy-handley-b2b0a61a/@lucyhandley

Wall Street bank Jefferies has picked a raft of standout stocks set to benefit from the global rollout of Covid-19 vaccines. Jefferies surveyed thousands of people in regions including the U.S., China, the U.K. and continental Europe to understand their spending habits, personal investments and health, and listed their top stocks based on consumers' attitudes. European stocks set to benefit include airlines, hotel groups, retailers and video games companies. Here are some of Jefferies' top picks, per a research note published Monday: As people focused on home improvements during stay-at-home measures, the DIY sector looks to be an "ongoing winner," according to Jefferies research. People in the U.K., France, Germany, Spain and Italy who did more DIY during lockdowns expected to do more once restrictions are lifted, and the bank said this is good news for Kingfisher , owner of French stores Brico Depot and Castorama as well as British chain B & Q. In luxury goods, Dior and Louis Vuitton-owner LVMH is a buy for Jefferies due to the outperformance of its fashion and leather divisions. The bank expects the company's travel retail stores to get a boost as the economy opens up, either later this year or in the first quarter of 2022. "Greater opportunities for socializing and wearing new clothes as well as the general 'feel-good factor' of a return to normal life are likely to have a positive impact on Luxury spend," the bank's analysts said. More than 45% of people Jefferies surveyed are set to book holidays for the second half of the year, with domestic travel more likely than international. Jefferies' top picks include French hotel group Accor , British company Whitbread and airline Jet2 . So-called vaccine passports are currently being discussed by the British government. Going out to eat or drink is a top priority for Europeans when restrictions are lifted per the bank's research and it likes The Restaurant Group , which owns several U.K. chains including Wagamama. The bank said people are likely to have "sufficient confidence" in the vaccine that they will eat out as much as they did pre-pandemic. Jefferies also picked Dutch brewer Heineken , which it said is set to benefit as people plan to head out for a drink — pubs in the U.K. will be allowed to open for outdoor table service from April 12. Eating habits have changed during the pandemic, with people claiming to have both eaten more healthily and consumed more snacks. This is set to benefit Ireland's ingredient-maker Kerry Group , according to Jefferies. When it comes to gaming stocks, the market is concerned about whether people who started playing during the pandemic will continue to do so as strict public health measures are relaxed. Jefferies points to a "solidly positive" trend here and recently upgraded Elite Dangerous producer Frontier Developments and Swedish developer Paradox Interactive to buy ratings. People in the U.K. are keen to move house, per Jefferies research, and those earning under £50,000 ($69,000) per annum are the least worried about their finances. This is set to benefit housebuilder Persimmon , which is the bank's top pick. Jefferies surveyed more than 5,500 people in the U.S., China, Japan, the U.K., France, Italy, Germany, Spain, Hong Kong, India and Australia for its research note on how consumers will be "springing back" post-pandemic.

Navy personnel prepare doses of the COVID-19 vaccine before the opening of a mass vaccination site in the Queens borough of New York, February 24, 2021.

Seth Wenig | Pool | Reuters

Wall Street bank Jefferies has picked a raft of standout stocks set to benefit from the global rollout of Covid-19 vaccines.

Jefferies surveyed thousands of people in regions including the U.S., China, the U.K. and continental Europe to understand their spending habits, personal investments and health, and listed their top stocks based on consumers' attitudes.

European stocks set to benefit include airlines, hotel groups, retailers and video games companies.

Here are some of Jefferies' top picks, per a research note published Monday: