BUZZ-Top of the Street: European banks, Neste, Endesa, E.ON

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

** European Banks: Kepler Cheuvreux upgrades the sector to "overweight" citing better economic activity in Europe, likely forthcoming increase of inflation expectations and the removal of the French electoral roadblock

** Deutsche Bank (IOB: 0H7D.IL - news) : In a separate note entitled "Expecting an encouraging start into 2017", Kepler reinitiates coverage of the bank as "buy", adding that the 8 bln euro capital strengthening allows DB to shift its focus to growth opportunities

** HSBC: Investec (LSE: INVP.L - news) says that after a 13% 2-month share price correction and with an unchanged expectation in 2017 year-end 1.35 £/$ exchange rate, the broker's price objective has been met; upgrades to "hold"

** Neste (LSE: 0O46.L - news) : UBS (LSE: 0QNR.L - news) downgrades co and Saras to "neutral" as the broker sees their risk/reward more balanced following the 23 pct USD rally YTD

Danske Bank (LSE: 0NVC.L - news) also downgrades Neste to "hold", saying shares are currently valued on par with historical average levels and adding that uncertainties over U.S. biofuel legislation are set to limit further upside in the near term

** Endesa (LSE: 0N9G.L - news) : "Our new target price (EUR 22.3 from EUR 22) leaves limited upside potential (c.3%) to the current share price, leading us to downgrade our rating to neutral" says Credit Suisse (IOB: 0QP5.IL - news)

** E.ON: Jefferies says its confidence in the co has lowered due to rising prospects of regulatory intervention in the UK retail market, a weak near-term FCF equation and lack of long-term earnings growth; downgrades to "hold"

(*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)