Top of the Street: European chemicals, French banks, European testers
08/04/2022 12:17
A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
** HSBC cuts TIC (testing, inspection, and certification)
companies Intertek ITRK.L and SGS SGSN.S to "hold" from
"buy", seeing slower growth in the near-term, while Paris-listed
Bureau Veritas BVI.PA ("buy") is its preferred pick in the
sector due to its cash generation potential
** Jefferies downgrades French lenders Societe Generale
SOGN.PA and Credit Agricole CAGR.PA to "hold" from "buy" due
to uncertainty on Russian exposure, adding it expects the excess
capital to vanish this year urn:newsml:reuters.com:*:nL5N2W60OJ
** Baader Helvea sees war in Ukraine severely affecting
European chemicals, cutting BASF BASFn.DE , Covestro 1COV.DE ,
Fuchs Petrolub FPEn.DE , K+S SDFGn.DE , Lanxess LXSG.DE and
Sika SIKA.S to "add" from "buy" urn:newsml:reuters.com:*:nL5N2W61JA
** Berenberg raises German ticketing firm CTS Eventim
EVDG.DE to "buy" from "hold", citing comeback of the European
events industry after the pandemic urn:newsml:reuters.com:*:nL5N2W612K
** Citigroup downgrades Swedish engineering firm Trelleborg
TRELb.ST to "neutral" from "buy", saying the stock lacks
further catalysts, leading to a balanced risk/reward
urn:newsml:reuters.com:*:nL5N2W6184
INITIATIONS AND REINSTATEMENTS
** Morgan Stanley resumes coverage of German telecoms
company Deutsche Telekom DTEGn.DE with "overweight", citing
the company's EBITDAaL/FCF growth, which the broker considers
among the best in the sector and sees 2023 as a "positively
transformational year"
** Morgan Stanley starts Spanish pharmaceutical company
Grifols GRLS.MC at "equal-weight" and a target price of EUR 20
(*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 Antonis Pothitos and Jagoda Darlak)
((antonis.pothitos@thomsonreuters.com ;
jagoda.darlak@thomsonreuters.com))