Top of the Street: Alstom, DSM, UniCredit, Novo Nordisk, Royal Mail, Stellantis

Aalberts

20/01/2021 13:03

A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
    
    ** Jefferies upgrades French train maker Alstom  ALSO.PA  to
"buy" from "hold", citing long-term industry tailwinds and the
company's strong self-help potential  urn:newsml:reuters.com:*:nL8N2JV0Y3
    ** Credit Suisse raises Dutch specialty chemicals firm DSM
 DSMN.AS  to "outperform" from "neutral", saying it has the
greatest portfolio optionality in the sector
    ** Barclays says in a note on telecoms that the extent of
revenue success of 5G will significantly depend on market
structure; raises Finland's Elisa  ELISA.HE  to "equal weight"
from "underweight"
    ** Societe Generale ups Italy's second-biggest bank
UniCredit  CRDI.MI  to "hold" from "sell" as the possible tie-up
with state-owned Monte dei Paschi  BMPS.MI  and forthcoming
appointment of a new CEO lower downside risks to valuation
 urn:newsml:reuters.com:*:nL8N2JV1QW
    ** Credit Suisse cuts Novo Nordisk  NOVOb.CO  to "neutral"
from "outperform" as following a strong performance over 2020,
the risk/reward is more balanced with 2021 unlikely to be a
transformational year  urn:newsml:reuters.com:*:nL8N2JV1A1
    ** Deutsche Bank raises Royal Mail  RMG.L  to "buy" from
"hold"; says its earnings have been materially rebased upwards
thanks to a faster structural shift towards e-commerce and
parcels, adding the group can now grow its earnings in the
medium term  urn:newsml:reuters.com:*:nL4N2JV1O4
    ** Berenberg cuts British service distributor
Electrocomponents  ECM.L  to "hold" from "buy" to wait for a
more attractive entry point, saying the market has already
priced in upside from expected cyclical recovery
    ** BofA Global Research downgrades Danish biotech company
Genmab  GMAB.CO  to "neutral" from "buy", citing high valuation,
negative risk/reward from U.S. arbitration, and outlook risks
due to lower royalty and other key factors
    
    INITIATIONS AND REINSTATEMENTS
    ** JP Morgan initiates carmaker Stellantis  STLA.MI ,
created by combining Fiat Chrysler and Peugeot-owner PSA, with
"overweight" as it expects synergies across four key markets
(Europe, Americas, and China)
    ** Morgan Stanley starts Dutch industrial machinery and
equipment company Aalberts  AALB.AS  with "overweight" based on
attractive mix of residential-focused construction, building
energy efficiency, and ESG with some cyclical recovery scope
    ** Morgan Stanley says EDPR  EDPR.LS  stock seems fairly
priced after a recent rally, while it sees a buying opportunity
for EDP  EDP.LS ; resumes EDPR with "equal-weight" and EDP with
"overweight"
    ** BofA resumes UK-based sports betting and gaming company
Entain  ENT.L  with "buy", seeing it well positioned with BETMGM
US Joint Venture for share capture, while its online exposure
continues to support strong growth in its core business
    
(*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.)


 ((Milla.Nissi@thomsonreuters.com; halilcan.soran@tr.com;))