Top of the Street: Leonardo, Ferrari, ASMI, tyre makers, staples

HALEON

13/01/2026 13:12

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

** Jefferies cuts ASMI ASMI.AS to "underperform" from "hold," citing likely further earnings cuts, as it expects "a choppy ride" for European semis in 2026

** Berenberg cuts Germany's Continental CONGD.DE to "hold" from "buy," saying it believes much of the upside from its sum-of-the-parts valuation after planned sale of its rubber and plastics division is priced in

** HSBC downgrades luxury carmaker Ferrari RACE.MI to "hold" from "buy", citing limited earnings surprise potential in 2026

** DNB Carnegie downgrades Norwegian oil and gas producer Var Energi VAR.OL to "sell" from "hold" on risks from a multi-year production decline and potential dividend cuts

** Kepler Cheuvreux upgrades Spanish bank Santander SAN.MC to "buy" from "hold," citing a new valuation method

** Deutsche Bank cuts Italian aerospace firm Leonardo LDOF.MI to "hold" from "buy" on limited upside

**  In a note on European consumer staples, Deutsche Bank downgrades Haleon HLN.L to "sell" from "hold" as it finds the company to be highly exposed to the channel shift from drug stores to Amazon in North America

** In contrast, it favours German personal care company Beiersdorf BEIG.DE and upgrades it from "buy" to "hold" on a likely turnaround and priced-in potential risks

** DB also upgrades French cosmetics maker L'Oreal OREP.PA to "hold" from "sell", noting that potential hit to stock from growth risks seem limited

** BofA cuts French infrastructure groups Vinci SGEF.PA and Getlink GETP.PA as it turns more cautious on the country's concessions sector

** It also upgrades Spanish airport operator Aena AENA.MC to "neutral" from "underperform", pointing to resilient traffic growth, a strong commercial segment and a firm commitment to its dividend payout

** RBC raises Kone KNEBV.HE to "sector perform" from "underperform" citing growth and margin tailwinds

** Goldman Sachs downgrades Associated British Foods ABF.L to "sell" from "neutral" on ongoing structural challenges at its Primark fashion chain, including rising competition and a margin reset

** UBS cuts BMW BMWG.DE to "neutral" from "buy", citing China headwinds and high valuation

INITIATIONS AND REINSTATEMENTS

** Berenberg initiates France's Michelin MICP.PA with a "hold" rating, citing a less compelling production footprint and cyclical headwinds in non-passenger segments

** Morgan Stanley starts coverage on Swiss real estate firm Swiss Prime Site SPSN.S with an "underweight" rating, labelling it as "Expensive Safety, Low Growth" and preferring stocks exposed to London offices

** Deutsche Bank initiates coverage of Swiss cosmetics company Galderma GALD.S with a "hold" rating, saying its solid growth story is reflected in the valuation after the stock more than doubled since its 2024 IPO

** J.P.Morgan initiates coverage of German lubricants maker Fuchs FPEn.DE with an "overweight" rating, viewing its robust free cash flow generation and strong balance sheet as standout qualities in a tough chemicals sector

(*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 Marta Serafinko and Marta Maciag in Gdansk)

 ((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))