MS still upbeat on European business services for 2026

Brenntag SE

06/01/2026 11:11

** Morgan Stanley reiterates its "attractive" view on the European business services sector for 2026, saying that recent share price declines offer appealing entry points

** The recent share price falls could be in part driven by concerns around AI disruption, MS says, but adds it sees them as "overdone"

** MS chooses Experian EXPN.L, Diploma DPLM.L, Verisure VSURE.ST, Rentokil RTO.L, ISS ISS.CO and Bureau Veritas BVI.PA as its top picks for 2026

** It cuts chemical distributors IMCD IMCD.AS and Brenntag BNRGn.DE to "equal-weight" and "underweight", respectively, saying the stocks appear cheap, but that it sees no imminent recovery given increased Chinese competition

** It upgrades Rentokil to "overweight" from "equal-weight", expecting "significant value to be unlocked in the medium term"

** Among distributors, MS upgrades RS Group RS1R.L to "overweight" and cuts DCC DCC.L to "equal-weight"

COMPANY
RATING
OLD RATING
PT
OLD PT
Rentokil
overweight
equal-weight
520p
450p
RS Group
overweight
equal-weight
790p
-
ISS
overweight
equal-weight
DKK 245
DKK 190
DCC
equal-weight
overweight
5750p
6150p
IMCD
equal-weight
overweight
EUR 100
EUR 139
SGS
equal-weight
overweight
CHF 100
-
Brenntag
underweight
equal-weight
EUR 50
EUR 63
Ashtead AHT.L
-
-
6,200p
6,000
Azelis AZE.BR
-
-
EUR 12
EUR 16
Eurofins EUFI.PA
-
-
EUR 64
EUR 61
Ferguson FERG.N
-
-
USD 270
USD 263
TP TEPRF.PA
-
-
EUR 115
EUR 128
SPIE SPIE.PA
-
-
EUR 49.5
EUR 48.5

 (Reporting by Javi West Larrañaga)

 ((javier.west@thomsonreuters.com; +34 918 35 61 12))