Top of the Street: Harbour Energy, Faurecia, Rheinmetall, Wacker Chemie
20/01/2023 13:27
A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
** Peel Hunt cuts British North Sea's biggest oil and gas
producer Harbour Energy HBR.L to "hold" from "add", saying
that without meaningful new discoveries to replace reserves, net
asset value (NAV) decline is a one-way bet
** Jefferies double-downgrades Faurecia EPED.PA to
"underperform" saying earnings risk is not priced in, and sees
less downside to volumes and more risks related to wages and
energy inflation for auto suppliers overall
** UBS downgrades Germany's Rheinmetall RHMG.DE to
"neutral" from "buy", as it believes positives such as mid-term
defence spending, Expal acquisition and additional Marder
deliveries to Ukraine are already priced in
** Credit Suisse cuts Wacker Chemie WCHG.DE to "neutral"
from "outperform" on near-term risks for the German chemicals
group's polysilicon division
INITIATIONS AND REINSTATEMENTS
** Berenberg starts coverage of SIG Group SIGNC.S with
"buy", as it sees growth opportunities for the Swiss packaging
company from its 2022 acquisition of Scholle IPN and strong
position in the liquid dairy market
** Citigroup resumes coverage of Belgian financial group KBC
KBC.BR with "neutral", saying the shares look fairly valued
despite the bank's good positioning to deliver a ROTE of 14% and
17% in 2023 and 2024, respectively
(*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 Diana Mandiá and Jagoda Darłak)
((diana.mandiaalvarez@thomsonreuters.com,
jagoda.darlak@thomsonreuters.com))