Top of the Street: Syensqo, Rio Tinto, Kojamo, capital goods

Aalberts

12/12/2023 13:27

A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
    
    ** J.P. Morgan upgrades Rio Tinto  RIO.L  to "overweight"
from "neutral" on its aluminum exposure, although it only
accounts for about 2% of 2024 estimated earnings
    ** JPM also raises Finnish real estate group Kojamo
 KOJAMO.HE  to "neutral" from "underweight" on a better rate
environment
    ** Morgan Stanley sees improved industrial production and
short-cycle stabilisation for capital goods companies in Europe
and the U.S. next year
    ** The broker raises Aalberts  AALB.AS  to "overweight" from
"equal-weight", saying its share price is "disconnected from
peers and earnings"
    ** It double-downgrades Wartsila  WRT1V.HE  to "underweight"
from "overweight" citing a risk of weaker new ship orders
    ** MS also cuts Sandvik  SAND.ST  to "equal-weight" from
"overweight", as it is cautious on mining equipment makers'
order intake
    
    INITIATIONS AND REINSTATEMENTS
    ** Berenberg initiates Syensqo  SYENS.BR  at "buy" following
its market debut on Monday, saying it "provides investors with a
rare opportunity to buy a leading speciality player with a
best-in-class portfolio in both its Materials and Consumer &
Resources segments"
    ** Stifel also starts Syensqo with "buy", calling the firm
spun off from Solvay  SOLB.BR  a "new growth story in chemical
sector" with an upside potential of around 26%
    ** Morgan Stanley initiates Syensqo at "equal-weight"
pointing to its "compelling" long-term growth opportunity, but
warns pricing and margin headwinds remain in 2024
    
    
(*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.)


 (Reporting by Olivier Cherfan and Agata Rybska)
 ((olivier.cherfan@thomsonreuters.com ;
agata.rybska@thomsonreuters.com))