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
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.