Top of the Street: Syensqo, Rio Tinto, Kojamo, capital goods
12/12/2023 13:27
A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
** J.P. Morgan upgrades Rio Tinto RIO.L to "overweight"
from "neutral" on its aluminum exposure, although it only
accounts for about 2% of 2024 estimated earnings
** JPM also raises Finnish real estate group Kojamo
KOJAMO.HE to "neutral" from "underweight" on a better rate
environment
** Morgan Stanley sees improved industrial production and
short-cycle stabilisation for capital goods companies in Europe
and the U.S. next year
** The broker raises Aalberts AALB.AS to "overweight" from
"equal-weight", saying its share price is "disconnected from
peers and earnings"
** It double-downgrades Wartsila WRT1V.HE to "underweight"
from "overweight" citing a risk of weaker new ship orders
** MS also cuts Sandvik SAND.ST to "equal-weight" from
"overweight", as it is cautious on mining equipment makers'
order intake
INITIATIONS AND REINSTATEMENTS
** Berenberg initiates Syensqo SYENS.BR at "buy" following
its market debut on Monday, saying it "provides investors with a
rare opportunity to buy a leading speciality player with a
best-in-class portfolio in both its Materials and Consumer &
Resources segments"
** Stifel also starts Syensqo with "buy", calling the firm
spun off from Solvay SOLB.BR a "new growth story in chemical
sector" with an upside potential of around 26%
** Morgan Stanley initiates Syensqo at "equal-weight"
pointing to its "compelling" long-term growth opportunity, but
warns pricing and margin headwinds remain in 2024
(*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 Olivier Cherfan and Agata Rybska)
((olivier.cherfan@thomsonreuters.com ;
agata.rybska@thomsonreuters.com))