UK Markets closed

BUZZ-Axel Springer: UBS sees strong short-term momentum

** German publisher Axel Springer (Swiss: SPR.SW - news) up ~2 pct as UBS (LSE: 0QNR.L - news) raises rating to "neutral"

** UBS says long-term question marks exist but short-term momentum is strong for the stock

** Says with a PEG ratio of 2.4x, Axel Springer is trading at a premium to other online names (Rightmove , Scout24 , Autotrader)

** Sees (Shanghai: 600481.SS - news) short-term momentum as positive for 3 reasons:

1. Co. expects classifieds organic growth to inflect in Q4 to low double digit vs +9.8 pct in Q3 2018,

2. Jobs vertical will see significant margin expansion in Q4 2018 post declines ytd, benefiting from lower marketing spend; and

3. Business insider revenue growth ahead of mgmt. expectations could support better News margins