Stocks on AIM Market Expected to Rebound: Is the Oversold Status Signaling a Comeback?
London's AIM market is slated for a potential resurgence, according to broker Turner Pope. After a prolonged downturn, they remark that AIM is significantly oversold and ripe for a rebound in the latter half of 2025.
At the moment, AIM is trading approximately 40% below its 10-year average and an astounding 60% behind the FTSE All-Share (1). This steep discount, as argued by Turner Pope, becomes increasingly difficult to ignore as the economic climate shifts and investors re-focus their attention.
One reason for the optimism lies within the streamlined AIM index - it now houses just 586 companies, a substantial drop from its peak of almost 1,700 (1). This pruning has left a tight group of better-managed businesses that often boast global intellectual property and strong growth prospects across sectors with long-term tailwinds, such as clean tech, life sciences, and digital infrastructure (1).
In addition, the stage for AIM's comeback may already be set, with rate cuts, potential pension reform for increased small-cap investment, and increased mergers and acquisitions (M&A) discussions on the table (1).
Indeed, the early signs of recovery appear to be present. Over the past week, the AIM All-Share experienced a 3% rise and has climbed 15% over the past month, outperforming the FTSE 100 on both counts (1).
Notable performers on AIM include Symphony Environmental, which saw a 100% surge after securing £2.5million from new investor Quantum Leap, and Mosman Oil and Gas, which rose 42% following its unveiling of the maiden resource estimate for the Sagebrush Project in Colorado (1).
However, not all stories on AIM are positive. Companies, such as Argentex, Ocean Harvest Technology, Mirriad Advertising, and Totally, have faced challenges, ranging from funding difficulties to historic medical negligence claims and board restructuring (1).
Lastly, it's worth mentioning the potential undervaluation of Arecor Therapeutics. According to Panmure Liberum, the shares, trading around 40p, should be worth 245p, highlighting its insulin and peptide delivery platform's untapped potential (1).
For comprehensive small- and mid-cap news, visit www.proactiveinvestors.co.uk (1).
- The prospects for investing in London's AIM market, as suggested by Turner Pope, are promising due to the market's significant oversell and the potential for a rebound, especially in the latter half of 2025.
- With the AIM index streamlined to just 586 companies, investors might find better-managed businesses with global intellectual property and strong growth prospects across sectors like clean tech, life sciences, and digital infrastructure.
- The AIM All-Share experienced a 3% rise over the past week and a 15% climb over the past month, indicating early signs of recovery and outperforming the FTSE 100 in both cases.
- Meanwhile, certain companies on AIM, such as Arecor Therapeutics, may be undervalued, with its shares trading around 40p, butAnalysts at Panmure Liberum believe the shares should be worth 245p, highlighting its insulin and peptide delivery platform's untapped potential in the finance and investing sectors.
