BUZZ-Top of the Street: Colonial, Aena, European airports, UK utilities

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

** Colonial: ING cuts to "hold" from "buy" due to recent performance and increased cash flow valuation levels

** JP Morgan downgrades Aena to "underweight" from "neutral" on valuation grounds and risks to mid-term free cash flow

** Peel Hunt ups Jupiter Fund Management to "buy" from "hold", saying the balance of risk has definitely shifted to the upside

INITIATIONS AND REINSTATEMENTS

** Berenberg says rising investment, growing regulatory pressures and structural challenges for European airports will separate "the winners from the losers" over the next five years

** The brokerage starts Aena and Vienna Airport with "buy", Aéroports de Paris with "hold", Fraport and Flughafen Zuerich with "sell"

** Jefferies sees scope for UK listed water companies to deliver 8%-10% nominal returns, with outperformance related to financing, operating costs and incentives

** Jefferies initiates Severn Trent with "buy", United Utilities Group and Pennon Group with "hold"

** JP Morgan starts to cover Ferrovial with "overweight", citing the company is "best positioned" for the next leg of the macroeconomic cycle

** JP Morgan reinstates G4S with "neutral" given the near-term limitations of a relatively levered balance sheet

** Securitas: JP Morgan starts with "underweight" on rising competitive pressures and continued employee cost pressures

(*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.)