BUZZ-Top of the Street: ABF, Dassault Aviation, Faurecia, Lundbeck

A round-up of notable broker activity this morning from Europe's top-ranked* analysts:

** 5-star ranked Jefferies's analyst James Grzinic upgrades Associated British Foods Plc (LSE: ABF.L - news) to "buy"; it recognises continued strength in sugar and a turn in Primark margins from 17/18

** Dassault Aviation SA (LSE: 0IAX.L - news) : Credit Suisse (IOB: 0QP5.IL - news) raises to "outperform"; broker sees burgeoning recovery or at least end of deterioration in bizjet market, adding that the planned tax reform in the US would amplify this movement; it also says Rafale success story may continue: "After three export orders booked in two years, more may be coming in the not too distant future, possibly even in H2"

** Faurecia SA: Alphavalue raises to "add" saying that the reported Q1 revenue growth of more than 9 percent was a surprise; broker raises revenue and profit projections for the next few years

INITIATIONS:

** H Lundbeck A/S: In a note entitled "Margin recovery story is no longer enough", Kepler Cheuvreux starts coverage with "reduce" saying that Lundbeck’s 130% share price rise over the last two years was driven by an operating margin recovery; broker sees risks from rising US dependence and the greater focus on governmental drug spending; it adds that late-stage pipeline is quite bare

(*Analyst rankings from Thomson Reuters StarMine. Scale is from 1-star to 5-star with 5 being best. Analysts ranked on earnings accuracy as well as relative performance of recommendations over trailing 12-month & 24-month periods)