Top of the Street: Vestas, ABN Amro, ArcelorMittal, Italian utilities

ArcelorMittal SA

14/11/2024 13:42

A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
    
    ** Jefferies raises Finnish forestry firm UPM-Kymmene
 UPM.HE  to "buy" from "hold," citing its strong balance sheet,
appealing earnings profile and dividend yield, supported by
robust FCF
    ** Berenberg cuts Danish wind turbine maker Vestas  VWS.CO 
to "hold" from "buy" on weaker volumes in Power Solutions
business, and weaker margins in Power Solutions and Service
business 
    ** Morgan Stanley downgrades ABN Amro  ABNd.AS  to
"underweight" from "equal-weight" as the broker sees only 10%
upside for the Dutch lender, compared with a 25% upside on
average for the sector
    ** BofA Global Research upgrades ArcelorMittal  MT.AS  to
"buy" from "neutral" on a new Sum of the Parts valuation with
earnings evolving away from Europe and the company's disciplined
decarbonisation capex limiting potential downside to the group
cash flows
    
    INITIATIONS AND REINSTATEMENTS
    ** In a note on Italian utilities, Stifel says Snam  SRG.MI 
and Terna  TRN.MI  are defensive and offer attractive dividend
yields
    ** It starts Snam with "buy," saying it offers higher upside
after Terna's outperformance in the last 12 months and is
upgrading infrastructure and refocusing towards the energy
transition
    ** It initiates Terna with "hold" as its prospects are
priced-in and offers a lower ROE and dividend yield than Snam
    
    
(*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 Tiago Brandao and Philippe Leroy Beaulieu)
 ((Tiago.Brandao@thomsonreuters.com;))