Barclays prefers online pharma, food delivery among European internet stocks

Acast AB (publ)

01/06/2022 10:27

** Barclays says much uncertainty remains regarding the
European internet sector as it faces the impact from weaker
macro, cost headwinds and online penetration stabilising
post-pandemic 
    ** The sector has suffered lately as rapidly rising cost of
capital and operational headwinds led to earnings downgrades and
share price underperformance, the broker says
    ** Among its favoured stocks are Hellofresh  HFGG.DE 
("overweight"), which "now looks cheap", online pharma, whose
growth is set to accelerate considerably in 2023, and food
delivery, which is moving quickly to profitability
    ** Barclays says Schibsted  SBSTA.OL , Adevinta  ADEV.OL 
(both "overweight"), and Scout24  G24n.DE , which it upgrades to
"overweight" from "equal weight", are interesting plays in
classifieds with upside potential from corporate action 
    ** Its least favoured stocks are fashion e-commerce, as it
cuts Berlin-based Zalando  ZALG.DE  to "equal weight" from
"overweight"
    ** Barclays downgrades Sweden-based software developer Acast
 ACAST.ST  to "equal weight" from "overweight", seeing lack of
specific catalysts on the horizon to drive a multiple re-rating
and risks to earnings momentum 
    ** It keeps "underweight" rating on rail and coach travel
platform Trainline  TRNT.L 

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))