Top of the Street: Munich Re, food ingredients makers
19/11/2020 13:48
A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
** Societe Generale cuts German reinsurer Munich Re
MUVGn.DE to "hold" from "buy", citing uncertainty around
pandemic-related insurance claims and the stock's valuation
INITIATIONS AND REINSTATEMENTS
** Barclays starts coverage of six food ingredient
companies, saying the COVID-19 pandemic is accelerating global
megatrends towards health, wellness and sustainability
** However, the recession is also likely to destabilize
order patterns and pandemic-related increased safety
requirements might weigh on returns, Barclays says
** The broker says it prefers stocks with reasonable
valuation as well as improving structural growth and returns
prospects, and starts the Irish Kerry KYGa.I and Glanbia
GL9.I at "overweight"
** Together with Dutch rivals Corbion CORB.AS and DSM
DSMN.AS , Kerry seems particularly well-positioned to benefit
from megatrends, Barclays adds
** At the same time, Chr Hansen's CHRH.CO quality of
growth has been slipping from historical standards, Barclays
says, and initiates the Danish company at "underweight"
** The broker also starts Swedish AAK AAK.ST , Swiss Barry
Callebaut BARN.S and British Tate & Lyle TATE.L with "equal
weight", citing priced-in growth prospects, balanced risk/reward
and pricing challenges, respectively
(*Analyst rankings from Thomson Reuters StarMine. The scale is
from 1-star to 5-star with 5 being the best. Analysts are ranked
on earnings accuracy as well as relative performance of
recommendations over trailing 12-month & 24-month periods.)
((clement.martinot@thomsonreuters.com;
anna.banacka@thomsonreuters.com))