Top of the Street: Diageo, Colruyt, general retailers
15/06/2023 12:29
A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
** Goldman Sachs cuts world's largest spirits maker Diageo
DGE.L to "neutral" from "buy" saying it expects a prolonged
normalisation in the U.S. spirits market
** Barclays raises Colruyt COLR.BR to "equal weight" from
"underweight" as it turns more optimistic about the Belgian
supermarket chain's earnings momentum, set to improve in the
short term, and despite concerns on long-term growth prospects
INITIATIONS AND REINSTATEMENTS
** Bernstein initiates coverage of five European general
retailers with focus on fashion
** Berstein initiates Associated British Foods ABF.L with
"outperform", preferring the Primark-owner over apparel peers
due to its efficient business model and 34% upside to stock
price
** The broker initiates Inditex ITX.MC with "outperform",
saying consistent growth in margins and returns gives "the queen
of apparel retail" a strong financial position
** Bernstein starts Next NXT.L at "market-perform", citing
the stock's fair valuation despite bit lower projected growth
and its orientation primarily in the British market
** Bernstein initiates Zalando ZALG.DE and H&M HMb.ST
with "underperform", seeing downside of 17% for the former and
24% for the latter
(*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 Diana Mandiá and Adrianna Ebert)
((diana.mandiaalvarez@thomsonreuters.com
adrianna.ebert@thomsonreuters.com))