MS looks for idiosyncratic stories among EU software & services in 2025

Sinch AB (publ)

14/01/2025 10:44

** Laying out its 2025 outlook on European software and
services names, Morgan Stanley says that similarly to last year
economic backdrop is uncertain while IT spending remains subdued
    ** In such set-up, it says it continues to back strong 
idiosyncratic stories this year, preferring powerful
company-specific growth drivers, but adds investors should
consider adding some cyclicality
    ** Its five key ideas for 2025 are "overweight"-rated SAP
 SAPG.DE  with its earnings growth visibility to 2028,
structural payments sector winner Adyen  ADYEN.AS 
    ** It also flags Dassault Systemes  DAST.PA  as its growth
and margins should inflect this year, Publicis  PUBP.PA , which
it keeps as its top pick in media, and IONOS Group  IOSn.DE ,
noting its strong franchise in web presence and cloud solutions

    Rating changes:
 COMPANY      NEW RATING    OLD RATING    NEW PT      OLD PT
 Compugroup   equal-weight  overweight    EUR 22.0    EUR 25.00
 Medical                                              
  COP0v.DE                                            
 Informa      overweight    equal-weight  1,000p      900p
  INF.L                                               
 Nexi         under-weight  equal-weight  EUR 4.75    EUR 7.15
  NEXII.MI                                            
 Sinch        equal-weight  under-weight  SEK 20.50   SEK 23.50
  SINCH.ST                                            
 Trustpilot   equal-weight  overweight    305p        220p
  TRST.L                                              
 Wise         equal-weight  overweight    1,185p      1,045p
  WISE.ST                                             
 Worldline    equal-weight  under-weight  EUR 8.00    EUR 7.00
  WLN.PA                                              
 
 (Reporting by Vera Dvorakova)
 ((vera.dvorakova@thomsonreuters.com))