European exchanges: 2020 to be an "accommodative" year - UBS

Flow Traders

19/12/2019 13:59

** European exchanges should see in 2020 the start of a cash
equity volume upcycle, more M&As, an increase in volatility and
only minor regulatory impacts, says UBS
    ** "Overall, we think 2020 will be an accommodative
environment" the broker says
    ** UBS sees solid earnings growth for the traditional
exchanges but adds that the upside share price potential for the
sector is limited due to stretched valuations
    ** The broker upgrades pan-European stock market operator
Euronext ENX  ENX.PA  and Spanish stock exchange operator BME
 BME.MC  to "neutral" as it expects the two companies to benefit
from a growth in cash equity volumes
    ** UBS analysts say LSE's  LSE.L  shares have upside to
their price target but expect it to remain limited until the
European Commission finishes reviewing its proposed acquisition
of Refinitiv
    ** Deutsche Boerse  DB1Gn.DE  ("buy") remains the broker's
top pick in the sector, as its forecasted 9% growth in 2020
should drive its outperformance
    ** UBS downgrades Flow Traders  FLOW.AS  to "neutral" due 
to lower equity market volatility forecasts for Europe and the
U.S.

 ((r.plantera@thomsonreuters.com))