BUZZ-Top of the Street: round-up of highly rated analyst action in Europe
Ratings & estimate changes by Europe's top-ranked* analysts:
** Pirelli : SocGen (Paris: FR0000130809 - news) (4-star analyst), ups rating to buy from hold, says co meeting earnings expectation despite negative currency impact, 2014 outlook strong.
** Saint Gobain (Berlin: GOB.BE - news) : SocGen (5-star analyst), raises price target to 50, says earnings potential underestimated by consensus.
** Grainger : Jefferies raises target price to 269p, rating buy.
** Intesa SanPaolo (Frankfurt: IES.F - news) : Deutsche (5-star on earnings accuracy), keeps buy on strong results, ups target price to 2.80, dividends well beyond expectations.
** RIO , BHP : Credit Suisse (NYSE: CS - news) sees shift back to quality within European metals & mining sector as earnings momentum wanes. Stronger balance sheets to attract investors to the large caps.
** Pearson (Dusseldorf: PES.DU - news) : Macquarie (top-ranked analyst, 5-stars on earnings & recommendations), keeps underperform, target price £9.00, US Education business remains under pressure as state budgets not strong enough yet.
** JPMorgan weighs in on the capex vs buybacks debate, argues both need not be mutually exclusive as both a function of strength of cash flows & credit availability.
* 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.
(Stocks Buzz is a pilot project. Please send any feedback or suggestions to vikram.subhedar@thomsonreuters.com) (RM (LSE: RM.L - news) : vikram.subhedar.thomsonreuters.com@reuters.net)