Top of the Street: ASML, auto parts makers, EU telecoms, Huhtamaki
26/06/2025 13:13
A round-up of notable broker activity this morning from Europe's top-ranked* analysts: ** Jefferies cuts semiconductor equipment makers ASML ASML.AS and ASM International ASMI.AS to "hold" from "buy", citing expected decline in 2026 wafer fabrication equipment (WFE) market ** Morgan Stanley cuts its estimates for European auto parts makers below consensus citing tariff and FX headwinds, and a low light vehicle production outlook It downgrades Continental CONG.DE to "equal weight" from "overweight" and upgrades Valeo VLOF.PA to "overweight" from "underweight" INITIATIONS AND REINSTATEMENTS ** Berenberg predicts transition from "defensive" to "defensive growth" for European telecom stocks as it initiates or re-initiates coverage on 20 companies from the sector Its top picks are BT Group BT.L, Deutsche Telekom DTEGn.DE, Cellnex CLNX.MC, Telecom Italia TLIT.MI, SES SESFg.LU, Zegona ZEG.L and Proximus PROX.BR ** UBS initiates Huhtamaki HUH1V.HE with "buy" rating as it sees the Finnish packaging company positioned to benefit from midterm structural tailwinds in sustainable packaging, driven by recovery in consumer spending, regulations and corporate sustainability target (*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 Olivier Cherfan and Joao Manuel Mauricio) ((JoaoManuel.VicenrteMauricio@thomsonreuters.com))