Top of the Street: Naturgy, Accor, BAE Systems, Next

Elior SA

29/11/2024 13:10

A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
    
    ** J.P.Morgan raises Spanish utility Naturgy  NTGY.MC  to
"neutral" from "underweight", citing strong earnings momentum
thanks to buoyant gas prices, tight global LNG supply & demand
as well as resilient power prices 
    ** It also ups Accor  ACCP.PA  to "overweight" from
"neutral", saying it stands out with improved execution and
potential value from disposal of AccorInvest 
    ** * The brokerage upgrades Elior  ELIOR.PA  to "overweight"
from "neutral", seeing it as an attractive recovery play with
favourable risk-reward post recent pullback
    ** BofA Global Research cuts BAE Systems  BAES.L  and
QinetiQ  QQ.L  to "underperform" from "neutral", pointing to
their weakest margin expansion outlook in the sector in the next
two years, U.S. concerns weighing on any multiple re-rating and
a lack of catalysts
    ** Jefferies raises miner Anglo American  AAL.L  to "buy"
from "hold", saying there is still risk related to its breakup
strategy but progress has been encouraging so far, also pointing
to the de-merger of American Platinum  AMSJ.J  as a positive
catalyst
    ** Kepler Cheuvreux upgrades Warehouses de Pauw  WDPP.BR  to
"buy" from "hold", as it sees the Belgian logistics company as
well positioned to lead the sector's recovery 
  
    INITIATIONS AND REINSTATEMENTS
    
    ** Berenberg starts Next  NXT.L  at "buy", saying it finds
the company fundamentally attractive, and notes the commitment
to returning surplus to shareholders and careful risk-taking,
allowing the business to adapt to change and develop new growth
angles 
    ** It also initiates coverage of British food retailer Marks
& Spencer  MKS.L  with "hold", pointing to a major self-help
recovery with management now increasing appeal of its customer
offer, mainly in womenswear 
    ** The brokerage starts Kingfisher  KGF.L  with "hold"
rating, saying  the prospects for macro-driven recovery look
mixed across the group at present due to the difficult market in
France, but notes marketplace online rollout adds to potential
growth 



(*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 Jakub Olesiuk)
 ((jakub.olesiuk@thomsonreuters.com))