BUZZ-Top of the Street: Polymetal, Galp Energia, Britvic, UK REITs
A round-up of notable broker activity this morning from Europe's top-ranked* analysts:
** Polymetal: JP Morgan ups to "neutral" as sees no other negative catalysts after co's $431m capex for planned Amursk POX-2 project allayed its concerns of a capex blowout and weak economics
** Goldman Sachs (NYSE: GS-PB - news) raises Galp Energia to "neutral" seeing balanced risk reward with "superior" exploration & production asset base reflected in premium valuation
** Morgan Stanley (Xetra: 885836 - news) cuts Britvic (Stuttgart: A0HMX9 - news) to "equal-weight" as does not expect update on co's cost savings target before FY19 res, nor sees scope for cash returns
** 5-star ranked UBS (LSE: 0QNR.L - news) cuts Intesa SanPaolo (Amsterdam: IO6.AS - news) to "neutral" from "buy", as "current multiples leave reduced room for earnings disappointment"
** Jefferies sees Bankia (Amsterdam: QU8.AS - news) more pressured in low rate environment; cuts to "underperform", citing weaker trading and likely need to rebuild NPA coverage following recent disposals
INITIATIONS AND REINSTATEMENTS
** Derwent London (LSE: DLN.L - news) : RBC starts with "underperform" given gradual declines in London office market rents and uncertainty around structural changes in office markets
** Broker initiates Land Securities (LSE: LAND.L - news) with "outperform"; says co's share price multiples are attractive given the overall quality of its balance sheet
** Starts Hammerson with "sector perform" saying "dramatic" increase in co's earnings yield coincided with increased negative sentiment towards UK retail property and higher financial gearing
(*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.)