BUZZ-Top of the Street: Mondi, MTU Aero Engines, PSA, Tesco, Mediobanca

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

** Credit Suisse (IOB: 0QP5.IL - news) raises Mondi (Frankfurt: KYC.F - news) to "outperform", pointing to co's industry leading returns, improved earnings prospects and valuation metrics

** MTU Aero Engines (IOB: 0FC9.IL - news) : Berenberg raises to "buy" saying that co's shares are down by 12% ytd - compared with Safran (Milan: SAF.MI - news) (flat) and Airbus (up 14%) - due to investor concerns about the latest GTF engine delay; broker believes the delay is temporary and downside risk is already priced in

** PSA: "Our thesis around a slow and costly turnaround at Opel/Vauxhall appears to be wrong", says Citigroup (Swiss: C-USD.SW - news) as it upgrades PSA to "neutral"

INITIATIONS AND REINSTATEMENTS

** Barclays (LSE: BARC.L - news) reinstates rating on Tesco (Frankfurt: 852647 - news) with "overweight" as it believes co's 3.5-4 pct margin target for 19/20 is realistic and Booker synergies look achievable

** Deutsche Bank (IOB: 0H7D.IL - news) starts coverage of Mediobanca (Milan: MB.MI - news) with "buy" noting that due to its business mix co offers a differentiated exposure to Italy

(*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.)