BUZZ-Top of the Street: Sodexo, Airbus, JCDecaux

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

** 5-star analyst Morgan Stanley cuts Sodexo to "underweight" as operating risk remains highs. Brokerage expects another year of weak organic sales (2.2% vs guidance 2-4%) and margins -20bps (vs guidance flat)

** Barclays raises Dassault Systemes to "equal weight" given the acceleration of revenue growth. Co "sounded optimistic around Q1 and FY 2018", Barclays says

** Barclays believe French media company JCDecaux needs perfect delivery, both in terms of top line and margins, to have any chance of outperforming further, downgrades to "underweight"

** JP Morgan says UK sugar tax will likely be a tailwind rather than a headwind for Britvic , raises to "overweight"

** 4-star analyst Credit Suisse cuts Airbus to "neutral" expecting an inevitable slowdown. Key risks include execution problems, USD weakness, investigations into alleged corruption, A400M negotiations and the civil aerospace cycle turning, CS adds

** 4-star analyst Evli raises Upm-Kymmene to "buy", expects attractive dividends in addition to growth investments in pulp and Specialty Paper

INITIATIONS AND REINSTATEMENTS

** SocGen initiates Deutsche Post AG with "buy", sees possibility of rising shareholders returns (buybacks)

** SocGen starts Bpost with "buy", says co has strong foundations in home market and business diversity. Also initiates Royal Mail with "Hold" due to "cash yield not enough to make up for Brexit risks"

(*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.)