Corrected: BUZZ-Top of the Street: Merlin, Severn, Klépierre, Thales, Philips, Stellantis and Pan African Resources

Koninklijke KPN NV

03/08/2026 12:29

Corrects company name and descriptor in headline and bullet 5
A round-up of notable broker activity this morning from Europe's top-ranked* analysts:
     
** Jefferies cuts Merlin Properties MRL.MC to "hold" from "buy", citing increased execution and financing risks as the Spanish real estate company expands its investment in data centre capacity and funding
** Jefferies cuts water utility Severn Trent SVT.L to "hold" from "buy", due to political and affordability risks in the UK water sector heightening uncertainties
** Jefferies downgrades Klépierre LOIM.PA to "hold" from "buy", seeing no short-term catalysts to push the French shopping centre operator's stock higher after a strong rally
** Barclays raises French engineering company Thales TCFP.PA to "equal weight" from underweight", due to acquisitions, higher margins, improved space execution and fading cyber concerns 
** UBS cuts Philips PHG.AS to "neutral" from buy", saying the Dutch healthcare company's margin upside is more limited in the near-term as its revenue acceleration slightly pushed out and relative share performance has been strong
** UBS downgrades Stellantis STLAM.MI to "neutral" from "buy", due to multinational carmaker's weaker-than-expected delivery on U.S. turnaround and growing concerns about achievability of free cash flow break-even
     
INITIATIONS AND REINSTATEMENTS
** Jefferies starts Pan African Resources PAFR.L with "buy", as the gold miner is reshaping its portfolio by materially growing production from high-grade sources and by diversifying its earnings mix in favour of Tier 1 jurisdictions.
     
(*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 Ozan Ergenay and Marta Frackowiak)
 ((Ozan.ergenay@thomsonreuters.com))