Top of the Street: Novo Nordisk, airlines, Telefonica, Compass, Bureau Veritas, Securitas
01/12/2025 12:34
A round-up of notable broker activity this morning from Europe's top-ranked* analysts: ** JP Morgan expects European transport market challenges to continue in 2026 but says an oversupply in short-haul market could benefit the likes of long-haul giant Lufthansa LHAG.DE, raising it to "neutral" from "underweight" ** The brokerage meanwhile cuts budget airline Easyjet EZJ.L to "underweight" from "neutral" on risks of oversupply in the European short-haul market ** RBC upgrades Swedish security provider Securitas SECUb.ST to "outperform" from "underperform", anticipating "a cleaner operation" in 2026 following Stanley integration ** RBC also raises UK-based food catering firm Compass Group CPG.L to "outperform" from "sector perform", saying concerns around consumer spending pressures, AI disruption and the impact of GLP-1 drugs seem overdone ** The same broker also cuts French testing firm Bureau Veritas BVI.PA to "underperform" from "sector perform", citing a weaker trade outlook for its sector linked to global trade INITIATIONS AND REINSTATEMENTS ** Jefferies resumes coverage of Danish drugmaker Novo Nordisk NOVOb.CO with "underperform" citing lack of clear valuation floor, continued competitive and structural risks, long-term earnings beyond 2026 ** Spanish telecoms operator Telefonica TEF.MC is resumed with a "neutral" rating by Citigroup, which sees "no quick fixes" to the challenges faced by the company (*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 Frackowiak and Marleen Kaesebier) ((marleen.kaesebier@thomsonreuters.com; marta.frackowiak@thomsonreuters.com))