Top of the Street: Bayer, Cofinimmo, DSV, luxury and reinsurance sector
02/05/2025 12:33
A round-up of notable broker activity this morning from Europe's top-ranked* analysts: ** J.P.Morgan cuts Danish hearing aid and audio solutions maker GN Store Nord GN.CO to "neutral" from "overweight", citing economic uncertainty affecting its audio business ** Morgan Stanley upgrades its rating for Talanx TLXGn.DE to "overweight" from "equal-weight", seeing both near-term and longer-term potential for the German insurer ** BNP Exane Paribas upgrades Belgian real estate investment trust Cofinimmo COFB.BR to "neutral" from "underperform" to reflect the all-share bid from Aedifica ** BofA Global Research upgrades German pharmaceutical and life sciences company Bayer BAYGn.DE to "buy", citing increased potential from stroke prevention medication asundexian and expected resolution of litigation issues ** Barclays says it is pushing a potential luxury sector earnings turnaround from the second half of 2025 to an undetermined later timeframe as it cuts estimates to better reflect economic headwinds ** It cuts European behemoth LVMH LVMH.PA to "equal weight" from "overweight" and slashes its PT by 27% to 550 euros, with limited positive catalysts in sight INITIATIONS AND REINSTATEMENTS ** Morgan Stanley resumes coverage of DSV DSV.CO with "overweight" rating following the acquisition of Germany's Schenker ** BofA Global Research analysts reinstate coverage of major players in Europe's reinsurance sector on "attractive fundamentals" playing well with "premium valuations" ** BofA rates SCOR SCOR.PA "buy", citing "depressed valuation with substantial upside" and expecting earnings and capital returns recovery ** The analysts rate the fairly-valued "soft-market winner" Hannover Re HNRGn.DE "neutral", and give the same rating to Swiss Re SRENH.S, citing its ability to build premium in the domestic market ** BofA rates Munich Re MUVGn.DE "underperform", as the valuation reflects its being the highest quality name in the space (*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 Marta Serafinko and Alban Kacher in Gdansk) ((Marta.Serafinko@thomsonreuters.com))