BUZZ-Top of the Street: Royal Mail, Tullow, transport and logistics

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

** Royal Mail (LSE: RMG.L - news) : Credit Suisse (IOB: 0QP5.IL - news) downgrades to "underperform" expecting worse letter revenue and a costly labour deal to render 2018 earnings unsustainable

** Berenberg starts Royal Mail with "hold" rating saying that investment case is overshadowed by the risk of industrial action, future pension and pay deals

** Macquarie downgrades Tullow Oil (LSE: TLW.L - news) to "neutral" flagging increased risk on Kenya and removal of the value associated with Araku

INITIATIONS AND REINSTATEMENTS

** Transport and logistics: Berenberg starts DSV (Copenhagen: C-DSV.CO - news) and Kuehne + Nagel with "hold"

** Broker views DSV (LSE: 0JN9.L - news) as the best performer in logistics space over last 3yrs and adds that there's little left for new investors; In a similar way it refers to K&N: "High quality at a high price"

** Berenberg initiates Deutsche Post (IOB: 0H3Q.IL - news) with "buy" rating, saying underlying asset quality remains under-appreciated

** Berenberg launches AP Moeller-Maersk as "sell", saying that Maersk Line appears to have lost its advantage and adding that the market is too optimistic about the prospects for co's Transport & Logistics business units

** Citi starts coverage of Grifols (Madrid: 13138883.MA - news) with "buy" rating, pointing to recurring growth and rising margin

(*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.)