Top of the Street: IHG, Brenntag, IMCD, BKW, Harbour Energy

Azelis NV

13/03/2024 14:08

A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
    
    ** Bernstein downgrades UK's Intercontinental Hotels Group
 IHG.L  to "underperform" from "market-perform", citing weak
core growth and lending conditions in the U.S. which overshadow
attractive long-term growth profile
    ** Berenberg raises UK's oil and gas firm Harbour Energy
 HBR.L  to "buy" from "hold", saying possible merger with
Wintershall Dea will transform the portfolio in terms of scale
and diversification, also boosting the brokerage's 2024
forecasts for the company
    ** Baader Helvea raises BKW  BKWB.S  to "add" from "reduce",
citing the Swiss energy firm's good short-term results momentum,
its strong market position and lower electricity prices leading
to lower share price in recent months
    ** HSBC downgrades UK digital bank Virgin Money  VMUK.L  to
"hold" from "buy" 
    
INITIATIONS AND REINSTATEMENTS
    ** Berenberg initiates coverage of speciality chemicals
companies 
    ** Names Netherlands' IMCD  IMCD.AS  ("buy") as
"best-in-class", citing its best growth profile, cash
conversion, ROIC at 11% and exposure to India, and global
chemical growth region, that will allow for gross profit
expansion ahead of peers
    ** Berenberg says Belgium's Azelis  AZE.BR  ("buy") is a
near match to IMCD, considering historical conversion margins
and growth, however, it notes lower ROIC (6%), open-market
liquidity and gross profit margin
     ** The brokerage says Germany's Brenntag’s  BNRGn.DE 
("hold") legal split of the business comes with a high cost for
the largest global distributor, adding that growth targets are
strong but the market seems to be waiting for proof of progress
 
     

 (Reporting by Lina Golovnya and Michal Aleksandrowicz)
 ((Lina.Golovnya@thomsonreuters.com;))