With just under 100 days until Election Day, several small-cap and midcap names could get a huge boost if former President Donald Trump wins, according to Jefferies. As it stands, Trump is seen as the leading candidate in several national polls , and Wall Street anticipates that his victory will result in less regulation across the board. This could mean a boost for companies, especially smaller ones, as deregulation would reduce costs involved with compliance. Small-cap stocks in particular have been on a monster run in recent weeks. Investors’ rotation away from megacap technology names and into smaller companies has pushed the Russell 2000 index higher by almost 10% over the past month. “One of the many reasons small has been rallying has been that the odds of a Trump victory has increased, and the perception is that he would be good for stocks and especially small caps,” Jefferies said in a Monday analyst note. “We saw this after his victory in 2016.” Here are some “smidcap” stocks that the firm sees as poised for a lift from a second Trump term: Live Nation shares could stand to get a boost from a Trump win. The stock is up more than 6% over the past three months, and Jefferies sees more room for the stock to run. The firm has a buy rating and a $112 price target on Live Nation, which implies more than 18% upside from Tuesday’s close. The stock has rebounded after facing some pressure during that three-month period, when the U.S. Department of Justice announced back in late May that it is suing to break up the entertainment company. The lawsuit comes after the DOJ launched an investigation into the company in 2022 in response to fan complaints over inflated ticket costs for Taylor Swift’s The Eras Tour. Oil and natural gas company Ovintiv could also benefit if the Republican party wins this November. Noting that it is “one of the few remaining midcap producers following the wave of upstream consolidation,” Jefferies anticipates substantial upside ahead. The firm has a price target of $68 on the stock, implying nearly 48% upside. Though the stock is down nearly 2% over the past month, shares are up more than 4% this year. Jefferies sees even more upside for SoFi Technologies , which also made the list. The firm has a price target of $12 on the stock, which implies more than 61% upside from Tuesday’s close. Shares are off 25% in 2024.
