Top of the Street: L'Oreal, Reckitt, IHG, Entain, Vidrala

Vidrala SA

14/11/2023 11:19

A round-up of notable broker activity this morning from Europe's
top-ranked* analysts:
    
    ** Morgan Stanley raises L'Oreal  OREP.PA  to "overweight"
from "equal-weight" on the French beauty giant's "superior
growth, margins, low own-label exposure, and ability to take
market share"
    ** Morgan Stanley cuts Reckitt  RKT.L  to "equal-weight"
from "overweight", remaining "wary of potential trade down in
Hygiene, and further earnings downgrades from Nutrition
rebasing" as main U.S. competitor intensifies competition
    ** Berenberg cuts InterContinental Hotels Group  IHG.L  to
"hold" from "buy" and TP by 8% to 6,000p, deeming the Holiday
Inn-owner "fairly valued" as it notes potential near-term
headwinds from financing challenges and geopolitical tensions
    ** Jefferies cuts Entain  ENT.L  to "hold" from "buy",
citing the Ladbrokes-owner's BetMGM investment, higher interest
costs and higher depreciation driven by the company's more
recent investments
    ** Citigroup raises Vidrala  VID.MC  to "neutral" from
"sell", seeing a flatter volume trajectory for the Spanish
bottle maker who still has a similar capacity to 2019, despite
expecting a weak Q4 for glass packaging companies due to poor
consumer spending outlook
    
(*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 Antonis Pothitos)
 ((olivier.cherfan@thomsonreuters.com ;
antonis.pothitos@thomsonreuters.com))