Euronext lacks catalysts as earnings at risk - DB cuts to "hold"

Allfunds

06/07/2023 11:54

** Deutsche Bank cuts Euronext  ENX.PA  to "hold" from "buy"
saying the pan-European stock exchange operator lacks catalysts
and faces a likely negative earnings momentum
    ** The broker expects the group to publish another three
months of negative growth across top and bottom lines in the
second quarter, citing the current subdued market environment 
    ** Though Euronext has done a good job to grow and diversify
its business over the last decade, the broker says cash equities
trading and corresponding activities such as settlement and
clearing remain important for the group and explain why its
revenue growth remains volatile
    ** DB also points to the withdrawal of Euronext's bid for
investment-platform Allfunds  ALLFG.AS  in March, which caused
confusion, and adds leverage remains a constraint for potential
deals and share buybacks, as does the lack of attractive targets
    ** Euronext shares are down 2.9% at 1051 GMT
    ** Among the 11 analysts covering the stock, 11 rate it
"strong buy" or "buy", 5 "hold" and 1 "sell"

 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))