Top of the Street: Pharma, healthcare, Tryg, Campari, Bunzl

Tryg A/S

12/07/2023 14:18

A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
    
    ** UBS upgrades AstraZeneca  AZN.L  to "buy" from "neutral"
as last week's de-rating on worse-than-expected lung cancer
trial update provides entry point to the pharma company with a
sector-leading pipeline and growth at a reasonable price
    ** Citigroup raises Tryg  TRYG.CO  to "buy" from "neutral",
citing Tuesday's consensus beat from the Danish insurance firm,
as well as attractive valuation and limited downside risk  
    ** Citigroup downgrades Campari  CPRI.MI  to "neutral" from
"buy", citing full valuation and potential short-term risks from
major M&A as the Italian spirits group has little experience of
major transactions/business integrations 
    ** RBC downgrades the British business supplies distributor
Bunzl  BNZL.L  to "underperform" from "sector perform", as it
cuts estimates due to declines in raw material pricing, and
expects modest organic decline in FY24, with limited recovery in
FY25

    INITIATIONS AND REINSTATEMENTS
    ** Goldman Sachs initiates coverage of five European
healthcare companies, expecting brighter outlook for the medical
technology sector after a challenging period of supply-chain
constraints, high costs and margin pressures
    ** GS initiates Philips  PHG.AS  with "buy": "the shares
represent good value today", GS says, as the Dutch company
emerges from a challenging period, marked by sleep devices biz
troubles
    ** GS rates Germany's Siemens Healthineers  SHLG.DE  and
Fresenius  FREG.DE  "neutral", as the former's "high quality
business" is already fairly reflected in the current consensus,
while the consensus expectations for the latter are in line with
the broker's current valuation
    ** It starts Sweden's Elekta  EKTAb.ST  with "sell",
expecting modest gross and EBIT margins in 2024, even if it sees
solid medium-term drivers
   
    
(*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 Jakub Olesiuk and Michal Aleksandrowicz)
 ((jakub.olesiuk@tr.com; michal.aleksandrowicz@tr.com))