Top of the Street: Schneider Electric, Ocado, Auto Trader, Kerry, European airlines
14/09/2022 13:33
A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
** Scheider Electric's SCHN.PA "increasingly synergetic"
portfolio makes it one of the most attractive profiles in the
electrical goods sector, Deutsche Bank says and upgrades the
French company to "buy" from "hold" urn:newsml:reuters.com:*:nL8N30L18X
** Jefferies upgrades Dutch DSM DSMN.AS to "buy" from
"hold", citing low valuation of the Dutch specialty chemical
company's nutrition business urn:newsml:reuters.com:*:nL8N30L0KB
** Stifel flags a "toxic mix" of demand weakness and
inflation looming European airlines and airports: urn:newsml:reuters.com:*:nL8N30L1W5
* it cuts low-cost airlines easyJet EZJ.L and Ryanair
RYA.I to
"sell" from "buy" and "hold" respectively, expecting magnified
yield and cost pressures for the former, and seeing the latter's
aggressive capacity growth depressing the ability to pass on
inflation
* it cuts Lufthansa LHAG.DE to "hold" from "buy", citing
broader
industry concerns urn:newsml:reuters.com:*:nL8N30L1W5
** Credit Suisse downgrades British online grocery retailer
Ocado OCDO.L to "underperform" from "neutral" following
another earnings miss and guidance cut, and recent industry
comments suggesting slower roll-out of Ocado's automated
warehouses for grocery companies
** Morgan Stanley cuts London-based automotive company Auto
Trader AUTOA.L to "equal-weight" from "overweight", saying the
half-year results cycle delivers few catalysts and the flow of
macro information from the UK may get worse in the near term
INITIATIONS AND REINSTATEMENTS
** Jefferies initiates Irish food company Kerry Group
KYGa.I with "hold", saying volume headwinds are more limited
than peers near-term but seeing mid-term challenges rising, and
fading prices posing a challenge to organic growth urn:newsml:reuters.com:*:nL8N30L247
** It also initiates Danish bioscience company CHR Hansen
CHRH.CO with "underperform" expecting operating momentum for
the company to likely remain challenging through the coming 12
months urn:newsml:reuters.com:*:nL8N30L247
(*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 Antonis Triantafyllou)
((marta.serafinko@thomsonreuters.com;
antonis.triantafyllou@thomsonreuters.com))