Top of the Street: American Tobacco, Aker, Boliden, NEL, NIBE Industrier
09/04/2021 14:31
A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
** JP Morgan Cuts British American Tobacco BATS.L to
"neutral" from "overweight", as it sees several near term risks,
among which there is weak first half of the year, buyback
disappointment, NGP miss and ramped-up HTP investment that could
slow shareholder return
** Societe Generale cuts oil firm Aker BP ASA AKERBP.OL to
"sell" from "hold" on valuation grounds
** The brokerage says Aker BP's long-term outlook
"optimisation" contributed to a downgrade in peak production
ambitions from over 400 kboe/d in 2026 pre COVID-19 to over 350
kboe/d in 2028 and the broker expects for output to fall just
short of 250 kboe/d in the mid 2020s
** UBS cuts mining and smelting group Boliden AB BOL.ST to
"sell" from "neutral", cuts target price to SEK 280 from SEK
290, as it sees smelter earnings drop year on year mainly due to
lower zinc treatment charges TC's
** Boliden's higher capex will limit free cash flow and
dividens, UBS adds
INITIATIONS AND REINSTATEMENTS
** Morgan Stanley starts Norway's NEL NEL.OL with
"overweight" rating and price target of NOK 32, saying
hydrogen's potential is promising with its improving economics
and its decarbonisation capabilities
** The brokerage sees electrolyser manufacturers as strong
potential beneficiaries given current bottlenecks in the
industry
** Berenberg initiates NIBE Industrier NIBEb.ST with "buy"
rating and price target of SEK 360, saying the Swedish heating
technology specialist is a market leader in the booming market
for sustainable solutions and its true growth potential is not
yet priced in
** The broker forecasts NIBE to grow EBIT over the next four
years at about 16% compound annual growth rate, driven by both
organic growth and M&A
(*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.)
((Anna.Banacka@thomsonreuters.com
Dagmarah.mackos@thomsonreuters.com))