Top of the Street: Sandvik, Airbus, Partners Group, Luxury

Fuchs Se

02/02/2021 11:27

A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
    
    ** Goldman Sachs cuts machine tool and mining equipment
maker Sandvik AB  SAND.ST  to "sell" from "buy" citing lack of
confidence in sustainability of Sandvik's high return on
invested capital (ROIC) as it enters into a phase of
structurally higher M&A
    ** Societe Generale cuts flavour and fragrance maker
Givaudan SA  GIVN.S  to "sell" from "hold", saying that
inflation will not only weigh on its profits but also on its
valuation
    ** Baader Helvea cuts Fuchs Petrolub SE  FPEG_p.DE   to
"reduce" from "add" as the potential strong Q4 is already in the
valuation but the base oil tightness limits margin improvement
    ** Morgan Stanley upgrades European planemaker Airbus
 AIR.PA  to "overweight" from "equal-weight", citing an
underestimation of the group's production increases  urn:newsml:reuters.com:*:nL8N2K81IW
    ** UBS cuts Jeronimo Martins SA  JMT.LS  to "sell" from
"neutral" on risk to margins in 2021 and the medium term from
Polish retail tax  urn:newsml:reuters.com:*:nL8N2K82J2
    ** Morgan Stanley cuts Partners Group Holding AG  PGHN.S  to
"equal-weight" from "overweight" 

    INITIATIONS AND REINSTATEMENTS
    ** Berenberg initiates coverage on pest control firm
Rentokil Initial plc  RTO.L  with "sell" rating and PT of 400p
and says the shares are mispriced  urn:newsml:reuters.com:*:nL4N2K81TW
    ** Berenberg starts London-based Burberry  BRBY.L  and
Italy's Moncler  MONC.MI  at "hold", citing the lack of a
turning point and limited leverage opportunity,
respectively urn:newsml:reuters.com:*:nL8N2K80YZ
    ** Leaving aside the COVID-19 disruption and focusing on
structural advantages, LVMH  LVMH.PA  and Kering  PRTP.PA  are
the ones to own, Berenberg says, and starts both with a "buy"
rating  urn:newsml:reuters.com:*:nL8N2K80YZ
    ** Morgan Stanley initiates Belgium-based brewer Anheuser
Busch Inbev SA  BUD.N  with "equal-weight rating", and Diageo
 DEO.N  with "overweight" 
    
    
(*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.)


 ((canan.sevgili@thomsonreuters.com
elizaveta.gladun@thomsonreuters.com))