Top of the Street: Stellantis, Kuehne und Nagel, H&M, European aerospace and defence

H and M Hennes and Mauritz AB

19/09/2025 11:25

A round-up of notable broker activity this morning from Europe's top-ranked* analysts:

** Berenberg upgrades Stellantis STLAM.MI to "buy" from "hold", citing an improving narrative thanks to better U.S. inventory and upcoming product momentum

** Deutsche Bank cuts Kuehne und Nagel KNIN.S to "hold" from "buy" saying the logistics group will face challenges in H2 and forecasting a material step down in profits in Q3 in a challenging backdrop

** Inderes cuts H&M HMb.ST to "sell" from "reduce", pointing to weak short-term growth drivers and citing revenue growth and the uncertain environment as ongoing concerns

INITIATIONS AND REINSTATEMENTS

** Goldman Sachs starts aerospace and defence stocks BAE Systems BAES.L and Rheinmetall RHMG.DE at "buy", citing cross-domain business and cash conversion for the former and alignment to Europe's rearmament and Germany's spending for the latter

** It starts Thales TCFP.PA at "sell" due to sales decline in its cyber & digital business and uncertainty around its civil telecoms space unit, it also starts Dassault Aviation AM.PA at "sell", staying cautious on its business jet outlook and French politics

** It initiates Leonardo LDOF.MI at "neutral" on similar valuation to peers and European defence opportunities despite lower Italian spending

** The brokerage initiates at "buy" aerospace companies Airbus AIR.PA on its straightening supply chain, Rolls-Royce RR.L on stronger cash generation in civil aeronautics and expertise in high-growth end-markets, Melrose Industries MRON.L saying it is undervalued, and Safran SAF.PA on underestimated civil aftermarket growth

** It starts MTU Aero MTXGn.DE at "neutral" given high valuation compared to peers

(*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 Jagoda Darlak and Alessandro Parodi)

((alessandro.parodi@tr.com, jagoda.darlak@tr.com))