Top of the Street: LVMH, Banco BPM, Marks & Spencer
A round-up of notable broker activity this morning from Europe's top-ranked* analysts:
** UBS cuts LVMH LVMH.PA to "neutral" from "buy," saying the French luxury goods group's stock is trading at its fair value
** Deutsche Bank downgrades Banco BPM BAMI.MI to "hold" from "buy," saying it's time to "turn a bit more cautious" on Italian banks after "unexpectedly strong market performance" in Q3
INITIATIONS AND REINSTATEMENTS
** Stifel starts coverage of BE Semiconductor Industries BESI.AS with a "hold" rating, saying the Belgian chip equipment maker's strong market position, tech advantage, and high margins are already priced in
** Deutsche Bank (DB) starts coverage of fashion retailer Next NXT.L at "hold" as in the broker's viewthe company's early move into online and good history of finding new avenues for profit should be balanced against macro pressure on itscustomer base
** DB alsoinitiates coverage on British DIY retailer Kingfisher KGF.L with "hold" - it highlightsmaterial improvements and cheap valuation but remains cautious as "the macro environment suggests further risks for earnings momentum"
** Deutsche Bank is more bullish on British retailer Marks & Spencer MKS.L - it starts coverage of M&S with "buy," viewing the company'sexposure to an older customer base as "more resilient" as well as believing that five years of strategic and operational changes will be "coming to fruition"
** Berenberg reinstates British online car marketplace Auto Trader AUTOA.L with "hold," saying it is set to benefit from network effect that will support high margins and will entrench its market-leading position
(*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 Andrey Sychev, Chiara Holzhaeuser, Marleen Kaesebier, Louis van Boxel-Woolf, and Greta Rosén Fondahn
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