BUZZ-Top of the Street: Centrica, RTL, Wirecard, EU specialty pharma & biotech

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

** Centrica (Frankfurt: A0DK6K - news) : 5-star Kepler Cheuvreux upgrades stock to "buy" from "reduce" on valuation grounds

** RTL: 4-star Deutsche Bank (IOB: 0H7D.IL - news) cuts rating of European broadcast group to "hold" from "buy" after outperformance of RTL's stock over falling TV peers this year

INITIATIONS AND REINSTATEMENTS

** Wirecard (IOB: 0O8X.IL - news) : Berenberg reinitiates with "buy", saying the payment sector's growth continues fuelled by structural drivers

** In a note on payment sector, broker says it prefers big-scale and flexible cos with exposure to e-commerce and Asia; Wirecard has c80 pct exposure to the online market, per broker, and the recent contract it won from IKEA Southeast Asia is evidence of its strong position in the region, it says

** Bernstein is overall "bullish" on the EU specialty pharma & biotech sector heading into 2018

** Merck KGaA (LSE: 0O14.L - news) : Bernstein says co is its top "outperform", citing a pipeline catalyst-rich two years ahead, with expectations limited and the recent pullback offering a highly attractive entry point

** Genmab (LSE: 0MGB.L - news) : Bernstein says co is its next top "outperform" in the sector; Darzalex expectations are high, but by the end of 2018 approvals/data should begin to validate the lofty expectations that have been under scrutiny, per broker

** UCB: Bernstein starts with "market perform"; in terms of pricing in the US, broker expects UCB to be a mixed bag (Cimzia negative, epilepsy positive)

** Lundbeck: Bernstein rates co "underperform" on the back of a stretched valuation and no real catalysts in 2018, outside of a new CEO and longer-term guidance which is already reflected in estimates

(*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) (RM (LSE: RM.L - news) : michal.aleksandrowicz.thomsonreuters.com@reuters.net; anita.kobylinska.thomsonreuters.com@reuters.net)