BUZZ-Top of the Street: Deutsche Telekom, UK Grocers, IMI, Segro, ProSieben

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

** Top-ranked Barclays (LSE: BARC.L - news) downgrades Deutsche Telekom (IOB: 0MPH.IL - news) to "equal weight", seeing slowdown in German operating free cash flow (OpFCF) growth

** UK Food Retailers: "We believe we are now trading through the peaks of UK CPI pressures. The obvious benefits of reducing input headwinds and of a less defensively minded consumer should provide a more helpful backdrop to grocers from here," Jefferies says

** Jefferies raises Morrison Supermarkets to "buy" as it is "best placed for outperformance" with an overlooked "nascent potential for growth in wholesale"

** Noting "strong accretive nature" of Booker acquisition, broker upgrades Tesco (Frankfurt: 852647 - news) to "buy" seeing its cash flow affected positively

** IMI (LSE: IMI.L - news) : Two brokers upgrade their ratings of stock; Stifel ("buy" from "hold"), despite "slightly" weak numbers, sees scope for recovery as value is emerging "after heavy price declines", while Numis ("hold" from "reduce") says "valuation is looking more sensible", although it still sees "little excitement" in shares

** Given "sector-beating" results, positive outlook and NAV and earnings f'casts growth, Stifel upgrades Segro (Frankfurt: S4VC.F - news) to "buy"

INITIATIONS AND REINSTATEMENTS

** Credit Suisse (IOB: 0QP5.IL - news) reinstates coverage of ProSieben with "underperform" due to too high consensus expectations for 2018 advertising and downside risk to margins

(*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.)