Top of the Street: Novo, Puma, defence companies

Coloplast A/S

13/03/2025 12:40

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

** J.P.Morgan raises Danish medical equipment maker Coloplast COLOb.CO to "neutral" from "underweight," saying its shares are now fairly valued, with more balanced earnings and valuation risks

** Jefferies cuts French defence and technology firm Thales TCFP.PA to "hold" from "buy" as it sees it has now rerated too quickly given its longer-cycle nature

** Goldman Sachs upgrades metals recycler and battery materials producer Umicore UMI.BR to "neutral" from "sell", citing a more balanced risk/reward outlook

** Kepler Cheuvreux raises Novo Nordisk NOVOb.CO to "buy" from "hold" on priced in risks and cuts to longer-term earnings, saying it "is finally the entry point"

** Exane BNP Paribas cuts German sportswear Puma PUMG.DE to "neutral" from "outperform," saying the grim profit guidance is "more than a speedbump"

** Goldman Sachs double upgrades French electric equipment maker Schneider Electric SCHN.PA to "buy" from "sell" on organic sales growth prospects

** HSBC raises British valve maker Spirax Group SPX.L to "buy" from "hold" after the stock corrects for the second time since its earnings inflection point

INITIATIONS AND REINSTATEMENTS

** Jefferies starts coverage of five European defence companies amidst increased rush in the continent to invest more in defence and decouple from U.S. military assistance

** It starts Germany's Rheinmetall RHMG.DE with "buy" and names it its top pick citing its strongest growth potential owing to its short-cycle focus at an attractive price

** The broker starts Italy's Leonardo LDOF.MI with "buy" rating saying it's a key player in a country where defence budgets are set to accelerate strongly

** It also initiates Rafale fighter jet maker Dassault Aviation AM.PA with "buy" saying it should benefit from Rafale ramp up and lower R&D

** Goldman Sachs starts coverage of Swiss bank Julius Baer BAER.S with "buy" rating, pointing to the Swiss bank's positive outlook on profitability, growth and future performance

(*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 Marta Serafinko and Alessandro Parodi in Gdansk)

((Marta.Serafinko@thomsonreuters.com))