Newsquawk Daily European Equity Opening News - 14th February 2024

14th February 2024

ASIA

APAC stocks declined amid headwinds from the US where hot inflation unwound Fed rate cut expectations. ASX 200 declined with underperformance in the top-weighted financial sector after Australia's largest lender CBA reported a drop in H1 profit and warned of financial strain from higher rates in 2024. Nikkei 225 retreated with the biggest stock movers influenced by earnings results, although further losses in the index were somewhat cushioned by the recent currency weakness. Hang Seng conformed to the risk-off mood on return from the holiday and with mainland Chinese markets shut.

Rakuten (4755 JT) - FY (JPY): Net -339bln (prev. -377bln), Operating -212bln (prev. -371bln). (Newswires)

Sony (6758 JT) - 9-month (JPY) net 781.6bln (prev. 809.0bln Y/Y), rev. 9.54tln (prev. 8.47tln Y/Y), raises FY net guidance to 920bln from 880bln but cuts FY rev. guidance to 12.3tln from 12.4tln Says: To start preparation for Sony Financial Group's listing and aims for the listing to occur in October 2025. PS5 sales 8.2mln units (exp. 9.1mln)

EUROPEAN CLOSES

CLOSES: DAX: -0.93% at 16,878.59, FTSE 100: -0.83% at 7,510.85, CAC 40: -0.84% at 7,625.31, Euro Stoxx 50: -1.19% at 4,689.85, IBEX 35: -0.59% at 9,925.40, FTSE MIB: -0.98% at 31,146.99, SMI: -0.34% at 11,141.60.

SECTORS: Energy 0.09%, Healthcare -0.14%, Utilities -0.34%, Financials -0.55%, Consumer Stpl -0.61%, Telecoms -0.74%, Materials -0.87%, Industrials -1.18%, Consumer Disc -1.58%, IT -2.95%

FTSE 100

abrdn (ABDN LN) - Harris Associates sold its stake in the Co. during 2023 as they “lacked confidence that management could repair the business”, via FT citing deputy Chair Herro. (FT)

British American Tobacco (BATS LN) – Co. has retained call options to repurchase its Russian and Belarusian assets, according to the Times citing the Co’s annual report. BATS did not disclose at the time of the sale of the businesses that it had retained the options to buy them back. (Times)

Shell (SHEL LN) - Withdraws from talks with Iraq to build a petrochemicals plant in the southern oil hub of Basrah. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

BAE Systems (BA/ LN) downgraded to Hold from Buy at Jefferies

Wizz Air (WIZZ LN) upgraded to Hold from Sell at Deutsche Bank

DAX

Siemens (SIE GY) - S&P raises rating to AA- (prev. A+); Outlook stable

Siemens Energy (ENR GY) – Co. is investing USD 150mln to expand its power manufacturing plant in North Carolina and will start producing transformers in the US next year to meet the increasing demand for electricity, according to Bloomberg (Bloomberg)

OTHER GERMAN COMPANIES

Bilfinger (GBF GY) - FY23 (EUR): Adj. EBITA 191mln (exp. 173mln), Revenue 4.49bln (exp. 4.41bln). Guides initial FY24 Revenue 4.5-4.8bln (exp. 4.7bln) (Newswires)

Delivery Hero (DHER GY) - Prelim. FY (EUR): adj. EBITDA 253mln (exp. 251mln), delivers on FY23 targets. 75% of the platform business profitable, ~10pp higher Y/Y. FY24 Guidance: adj. EBITDA 725-775mln (exp. 736mln). (Delivery Hero) +2.6% in pre-market trade

ProsiebenSat.1 (PSM GY) - Q4 (EUR): Adj. EBITDA 335mln (exp. 311.8mln), Revenue 1.28bln (exp. 1.3bln). Prelim FY23 Adj. EBITDA 578mln (exp. 554.2mln), Guides initial FY24 Adj. EBITDA 575mln (exp. 558.6mln). (Newswires)

Thyssenkrupp (TKA GY) - Q1 (EUR): Revenue 8.18bln (exp. 8.8bln); cuts FY net profit guidance and now expects to break even (exp. +472mln; prev. "slight increase" ); Co. says the steel industry is currently facing a very challenging environment. COMMENTARY: Lower volumes of materials and raw materials had a negative impact. With lower volumes and prices overall, Materials Services posted a figure of EUR 2.9bln for both order intake and sales (prev. EUR 3.3bln and EUR 3.2bln, respectively) in a weak economic environment. Shipment volumes were stable compared with the prior year, order volumes decreased, mainly driven by lower demand from automotive customers. OUTLOOK: In a difficult market environment characterized by geopolitical and trade conflicts, ThyssenKrupp anticipates that macroeconomic development in the current fiscal year will be challenging overall. Now expects net income to increase to around break-even (previously: increase to a positive figure in the low to mid three-digit million euro range). ThyssenKrupp continues to anticipate that adjusted EBIT will rise to a figure in the high three-digit million euro range (prior year: EUR 703mln). The group expects to achieve free cash flow before M&A in the low three-digit million euro range (prior year: EUR 363mln). (ThyssenKrupp) Shares seen -3.4% in pre-market trade

BROKER MOVES

CAC

Capgemini (CAP FP) - FY23 (EUR): Net 1.66bln (exp. 2.15bln, prev. 1.55bln Y/Y), Revenue 22.5bln (exp. 22.6bln). To propose a renewal of Aiman Ezzat as CEO. Guides initial FY24 Revenue flat to +3%, Op margin 13.3-13.6%, Organic FCF 1.9bln. BoD has decided to recommend the payment of a dividend of EUR 3.4/shr. (Newswires)

OTHER FRENCH COMPANIES

JC Decaux (DEC FP) - Launches the first global airport programmatic DOOH offer. (Newswires)

Ipsen (IPN FP) - Ipsen’s Onivyde regimen, a potential new standard-of-care first-line therapy in metastatic pancreatic adenocarcinoma, approved by the FDA. (Ipsen)

BROKER MOVES

PAN EUROPE

ABN AMRO (ABN NA) - Q4 (EUR): Net Income 545mln (exp. 422mln). Operating Income 2.041bln (exp. 2.057bln). 2023 NII 6.3bln (exp. 6.521bln). Co. says NII for 2024 is expected to be broadly in line with 2023; EUR 500mln share buyback announced. Impairment releases of EUR 83mln in Q4 due to net releases on individual files and releases from model reviews and management overlays. CFO says Real Estate book is well diversified and has no US exposure. (ABN AMRO/Newswires)

Cellnex Telecom's (CLNX SM) - Irish unit is being looked at by SBA Communications (SBAC), Asterion, and Phoneix, touted to be valued at EUR 1bln, according to Reuters sources. (Reuters)

Energy Names - EU Commission's Sefcovic said, after meeting White House officials, he understands the US pause in LNG export approvals will not affect US LNG shipments to Europe in the next two to three years. (Newswires)

Flughafen Wien (FLU AV) – Jan Passenger Traffic 2.33mln, +12% Y/Y. (Newswires)

Heineken (HEIA NA) - FY23 (EUR): Revenue 30.3bln (exp. 30.3bln). Net 2.30bln (exp. 2.50bln). Adj. Operating profit 4.44bln (exp. 4.50bln). Organic Revenue +5.5% (exp. 5.83%). COMMENTARY: "Our volume performance at the closing of 2023 was under pressure from external factors,". Full-year 2024 outlook: low- to high-single-digit operating profit (beia) organic growth. (Heineken)

OCI (OCI NA) - FY23 (USD): Adj. EBITDA 1.21bln (exp. 1.18bln), Revenue 5.02bln (prev. 9.71bln Y/Y). Targets 2024 shareholder returns of at least 3bln. (Newswires)

Santander (SAN SM) - in wake of the FT report, denies breaches of US sanctions against Iran. (Newswires) It was reported last week that Iran used Lloyds (LLOY LN) and Santander accounts to evade sanctions.

UniCredit (UCG IM) - Agrees with unions a bonus of up to EUR 2,200 for Italian staff, according to FABI union. (FABI)

BROKER MOVES

Signify (LIGHT NA) downgraded to Hold from Buy at Kepler Cheuvreux

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Kesko (KESKO FH) - Jan (EUR): 894.8mln, -2.1% Y/Y. (Newswires)

Norsk Hydro (NHY NO) - Q4 (NOK): 754mln (exp. 1.11bln), Revenue 44.7bln (exp. 44.4bln). Proposed NOK 2bln share buyback programme. Notes of challenging alumina markets in the short and medium term. (Newswires)

BROKER MOVES

Demant (DEMANT DC) downgraded to Reduce from Hold at Kepler Cheuvreux

Wihlsborgs Fastighter (WIHL SS) upgraded to Buy from Hold at Handelsbanken

US

CLOSES: SPX -1.37% at 4,953, NDX -1.58% at 17,600, DJIA -1.35% at 38,272, RUT -3.996% at 1,964.

SECTORS: Consumer Discretionary -1.96%, Real Estate -1.84%, Utilities -1.69%, Technology -1.56%, Materials -1.41%, Communication Services -1.34%, Financials -1.27%, Energy -1.16%, Industrials -1.01%, Consumer Staples -0.98%, Health -0.87%.

Airbnb Inc (ABNB) - Q4 2023 (USD): Revenue 2.22bln (exp. 2.16bln), Gross booking value 15.5bln (exp. 15.2bln), Adj. EBITDA 738mln (exp. 643.5mln), Adj. EBITDA margin 33% (exp. 29.9%); to buy back up to 6bln of Class A common stock. Q1 revenue view 2.03-2.07bln (exp. 2.02bln). (Newswires)

Lyft Inc (LYFT) - Q4 2023 (USD): Adj. EPS 0.18 (exp. 0.08), Revenue 1.22bln (exp. 1.22bln). Sees Q1 gross bookings about USD 3.5bln-3.6bln (exp. 3.48bln). Sees Q1 Adj. EBITDA USD 50mln-55mln (exp. 49.5mln). CFO corrects press release and says adjusted EBITDA margin expansion will be 50bps Y/Y in 2024 and not 500bps. (Newswires)

Tesla (TSLA) - Raises the price of Model 3 Long Range to USD 47,490 from USD 46,990 in the US. (Newswires)

Walmart (WMT) - Is reportedly in talks to buy TV maker Vizio (VZIO), according to WSJ citing sources; the deal would be more than USD 2bln and would boost its advertising business in battle with Amazon. (WSJ)

14 Feb 2024 - 06:47- EnergyResearch Sheet- Source: Newsquawk