Top of the Street: European infrastructure and utilities, Buzzi, Berkeley, Renault
03/12/2025 11:55
A round-up of notable broker activity this morning from Europe's top-ranked* analysts: ** J.P. Morgan cuts French infrastructure stocks Vinci SGEF.PA and Aeroports de Paris ADP.PA to "neutral" from "overweight" after a strong share rebound year-to-date and as 2026 French budget negotiations make infrastructure tax increases a possibility ** Citi prefers European utilities with a strong free cash flow and the potential to monetize data centre growth, upgrading EDP Renovaveis EDPR.LS to "buy" and cutting Enagas ENAG.MC to "sell" ** Morgan Stanley adjusts its views on European utilities, seeing an upside for some amid growing AI power demand; it upgrades E.ON EONGn.DE, Drax DRX.L and Veolia VIE.PA to "overweight" and Solaria SLRS.MC to "equal-weight" ** MS is more pessimistic about the prospects of Italian power companies, cutting Enel ENEI.MI to "underweight" on an outdated strategy and Italgas IG.MI to "equal-weight" on a less defined catalyst pipeline ** JPM downgrades Italian construction group Buzzi BZU.MI to "neutral" from "overweight" after a strong share rally in 2025, pointing to rising capex due to its decarbonization strategy in Europe ** Jefferies raises Berkeley Group BKGH.L to "buy" from "hold", as it sees the UK-based homebuilder benefiting in the medium term from impending changes in London housing policy ** UBS cuts French automaker Renault RENA.PA to "sell" from "neutral", saying margins are likely to normalize towards their historical levels (*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 Bernadette Hogg and João Manuel Maurício) ((bernadette.hogg@thomsonreuters.com; JoaoManuel.VicenteMauricio@thomsonreuters.com))