BUZZ-Top of the Street: Pennon Group, Severn Trent, SAP, Snam
A round-up of notable broker activity this morning from Europe's top-ranked* analysts:
** JP Morgan cuts Pennon Group to "neutral", saying that the risk/reward is now fairly balanced after a period of strong performance
** JP Morgan also cuts Severn Trent stock to "neutral", new rating is being based on a backdrop of attractive, inflation-linked regulation
** UBS downgrades SAP to "neutral" saying that co's cloud margins should show improvement, but the 2020 target of a 71% gross margin still looks unattainable
** Kepler Cheuvreux cuts Snam to "hold" from "buy"
(*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.)