Top of the Street: Retailers, software, insurers, beverages

Associated British Foods

12/01/2026 13:18

A round-up of notable broker activity this morning from Europe's top-ranked* analysts:

** "In Next, we trust", Bernstein says as it upgrades the British retailer NXT.L to "outperform" from "market-perform" for its consistent execution, strong international growth and attractive shareholder returns

** It also cuts Primark owner Associated British Foods ABF.L to "market-perform" from "outperform", as it lacks lustre amid persistent consumer weakness, lack of near-term catalysts

** UBS upgrades UK software firm Sage Group SGE.L to "buy" from "neutral", viewing its over 9% growth as well-underpinned, with artificial intelligence being an opportunity for its business model

** Exane BNP Paribas cuts French spirits maker Pernod Ricard PERP.PA to "underperform" and brewer Heineken HEIN.AS to "neutral", citing risks to sales estimates amid a "deeply" negative sentiment on the spirits market

** Exane BNP Paribas also downgrades Prudential PRU.L to "neutral" from "outperform", citing "toppy" valuations in the sector after a strong share price run

** Stifel cuts UK building materials supplier Travis Perkins TPK.L to "hold", being more selective on the sector due to a challenging trading environment

** Morgan Stanley downgrades Finnish IT services firm Tietoevry TIETO.HE to "underweight" from "equal-weight", seeing challenging organic growth in 2026 and little room for its valuation multiple to expand

INITIATIONS AND REINSTATEMENTS

** UBS initiates French IT firm Sopra Steria SOPR.PA at "buy", expecting a return to organic growth from late 2025 helped by its exposure to Europe's defence sector

** Citigroup starts coverage on British events group Informa INF.L at "neutral", citing the sector's attractive valuations after an "overdone" AI fears-driven selloff last year

(*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 Rafal Nowak and Clement Martinot in Gdansk)

((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))