Top of the Street: Heidelberg Materials, Deutsche Telekom, Big Yellow Group, European beverages and logistics
10/09/2024 14:19
A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
** HSBC downgrades Heidelberg Materials HEIG.DE to "hold" from
"buy" as it expects weak pricing outlook in emerging markets and
continued negative price/cost spread to lead to slow EBITDA
progression
** UBS downgrades Deutsche Telekom DTEGn.DE to "neutral" from
"buy" on valuation basis after the stock price reached
multi-year highs
** Goldman Sachs downgrades British self-storage firm Big
Yellow Group BYG.L to "neutral" following its outperformance
and slightly weaker occupancy trends
** Exane notes European beverages are trading at around 14-year
lows, but a more favourable macro context for staples could help
the valuations
** It upgrades AB InBev ABI.BR to "outperform" from
"neutral" and says it expects material share buybacks from 2025
and solid operational momentum to drive shareholder returns of
15-20%
** It upgrades Campari CPRI.MI to "outperform" from
"neutral", as it expects positive inflection in both earnings
and multiple
INITIATIONS AND REINSTATEMENTS
** J.P.Morgan resumes coverage of the European logistics sector
"just in time for most anticipated M&A as storm clouds gather on
container shipping"
** It resumes DHL DHLn.DE at "overweight", its top pick,
saying the group's medium-term returns and growth prospects are
undervalued by the market
** It also rates DSV DSV.CO as "overweight" and says a
potential deal for Deutsche Bahn's logistics unit DB Schenker
would be transformational for the Danish company
** It resumes Kuehne und Nagel KNIN.S at "underweight"
saying the Swiss freight forwarder lacks "a clear organic growth
or M&A strategy"
** It also re-initiates Maersk MAERSKb.CO at "underweight"
based on the expectations of negative ROIC and increasing
financial leverage post-2026
(*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 Greta Rosen Fondahn)
((mailto:Tiago.Brandao@thomsonreuters.com;Greta.RosenFondahn@tho
msonreuters.com))