Newsquawk Daily European Equity Opening News - 15th March 2024

15th March 2024

ASIA

APAC stocks declined amid data-related headwinds from the US including hot PPI and weak Retail Sales. ASX 200 was dragged lower by underperformance in mining-related industries after iron ore resumed its slide.Nikkei 225 retreated amid cautiousness ahead of the RENGO wage announcement and its potential ramifications on BoJ policy as reports had suggested strong wage hikes could be the deciding factor on whether the BoJ hikes at next week's crucial meeting. Hang Seng and Shanghai Comp. were negative with heavy losses in tech and property sectors in Hong Kong where the Hang Seng Mainland Properties Index fell more than 3% after a steeper decline in Chinese New Home Prices, while the mainland was only marginally pressured after the PBoC kept its 1-year MLF rate unchanged and opted to not fully roll over the maturing amount.

Samsung Electronics (005930 KS) - Poised to win over USD 6bln from the US for expanded investment, according to Bloomberg. (Bloomberg)

EUROPEAN CLOSES

CLOSES: DAX: -0.11% at 17,922.45, FTSE 100: -0.37% at 7,743.15, CAC 40: +0.29% at 8,161.42, Euro Stoxx 50: -0.13% at 4,993.85, IBEX 35: -0.66% at 10,490.50, FTSE MIB: -0.29% at 33,786.18, SMI: -0.54% at 11,726.60.

SECTORS: Energy 0.63%, Consumer Disc 0.24%, Telecoms 0.11%, Industrials 0.03%, Healthcare -0.03%, Utilities -0.15%, IT -0.26%, Financials -0.44%, Materials -0.56%, Consumer Stpl -0.66%

FTSE 100

BP (BP/ LN) - Confirmed joint talks with Venezuela and Trinidad and Tobago governments to develop a joint gas field. (Newswires)

Vodafone (VOD LN) - Swisscom (SCMN SW) confirmed that it is to acquire Vodafone Italy for an estimated value of EUR 8bln, cash and debt-free. Vodafone plans to return EUR 4bln to shareholders via buybacks. Swisscom intends to increase dividends to CHF 26/shr in 2026. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Admiral (ADM LN) upgraded to Buy from Neutral at UBS

Derwent London (DLN LN) upgraded to Buy from Hold at Berenberg

Derwent London (DLN LN) upgraded to Buy from Hold at Peel Hunt

Deliveroo (ROO LN) upgraded to Buy from Hold at HSBC

IAG (IAG LN) upgraded to Outperform from Underperform at BNP Paribas

IAG (IAG LN) downgraded to Reduce from Hold at Kepler Cheuvreux

Mondi (MNDI LN) upgraded to Buy from Hold at Jefferies

Tate & Lyle (TATE LN) initiated with Buy at Panmure Gordon

Wizz Air (WIZZ LN) downgraded to Underperform from Neutral at BNP Paribas

DAX

Vonovia (VNA GY) - FY23 (EUR): Adj. EBITDA 2.6bln (exp. 2.53bln, prev. 2.58bln Y/Y), Revenue 5.57bln (exp. 4.41bln, prev. 5.15bln Y/Y). Guides initial FY24 adj. EBT in a range of EUR 1.70-1.80bln, EBITDA 2.55-2.65bln. To propose a dividend of EUR 0.90/shr for FY23, +6% Y/Y. CEO says there are signs of market stabilisation and the worst is behind us. (Newswires)

OTHER GERMAN COMPANIES

Deutsche Lufthansa (LHA GY) - A spokesperson regarding the Verdi ground strike, said both sides want to arbitrate the collective conflict. (Newswires)

Hella (HLE GY) - FY (EUR): Adj. Sales 8.1bln (exp. 7.7bln), Operating Income 486mln (prev. 295mln Y/Y). Reiterates FY24 outlook: slight improvement in sales and earnings in a “persistently volatile market environment”. (Newswires)

HelloFresh (HFG GY) - Q4 (EUR): Revenue 1.86bln (exp. 1.9bln), adj. EBITDA 113mln (exp. 143mln), Active Customers 6.6mln -6.5% Y/Y, FCF 78mln (prev. -104mln). FY24 Guidance: Revenue growth 2-8%. Separately, Co. has denied claims that it has been taking subscriptions from customers who had cancelled their accounts. (HelloFresh/BBC)

Salzgitter (SZG GY) - FY23 (EUR): Pretax profit 238mln (exp. 246mln, prev. 1.25bln Y/Y), Revenue 10.8bln (exp. 10.8bln), EBITDA 677mln (prev. 1.62bln Y/Y), Div/shr 0.45. Guides initial FY24 pretax 250-300mln, Revenue 10.5-11bln (exp. 10.5bln).

BROKER MOVES

Encavis (ECV GY) upgraded to Equal Weight from Overweight at Morgan Stanley

CAC

Airbus (AIR FP) - United Airlines (UAL) is close to gaining Airbus jets after Boeing (BA) MAX 10 delays, according to Bloomberg. (Bloomberg)

BNP Paribas (BNP FP) - Is reportedly said to be weighing the purchase of Fosun's Ageas stake. (Newswires) Fosun International holds a 7.19% stake in Ageas, according to LSEG data.

OTHER FRENCH COMPANIES

Bollore (BOL FP) - FY23 (EUR): Adj. EBITDA 994mln (prev. 1.09bln Y/Y), Revenue 13.68bln (exp 16.78bln). Organic Revenue -5%. (Newswires)

BROKER MOVES

Francaise des Jeux (FDJ FP) upgraded to Buy from Add at AlphaValue

Sanofi (SAN FP) upgraded to Buy from Hold at Stifel Nicolaus

PAN EUROPE

BPER (BPE IM) - Places EUR 500mln in fixed-rate covered bonds. (Newswires)

Brunello Cuccinelli (BC IM) - FY23 (EUR): Net 123.8mln (exp. 131mln, prev. 87.2mln Y/Y), Revenue 1.14bln (exp. 1.26bln, prev. 920mln Y/Y). Affirms guidance. CEO says it expects a slight increase for Asia in the Group's sales for 2024. (Newswires)

Caixabank (CABK SM) - Announces the approval and commencement of a EUR 500mln share buyback program. (Newswires)

Cosmetic Names / L'Oreal (OR FP) - Ulta Beauty Inc (ULTA) Q4 2023 (USD): EPS 8.08 (exp. 7.53), Revenue 3.6bln (exp. 3.53bln); approves 2bln stock buyback programme; Provided soft guidance (details below). Shares fell 6.7% after hours.

Telecom Italia (TIT IM) - Italian Industry Minister said "We do not fear foreign investors in Telecom Italia, and we encourage investors like KKR". (Newswires)

BROKER MOVES

Bankinter (BKT SM) upgraded to Market Perform from Underperform at Keefe Bruyette

Brunello Cuccinelli (BC IM) downgraded to Reduce from Hold at Kepler Cheuvreux

BMPS (BMPS IM) upgraded to Outperform from Market Perform at Keefe Bruyette

KBC (KBC BB) upgraded to Equal Weight from Underweight at Barclays

SMI

Holcim (HOLN SW) - Commences a previously-announced CHF 18bln share buyback. (Newswires)

OTHER SWISS COMPANIES

Partners (PGHN SW) - Co. is considering the sale of some of its infrastructure assets, worth of up to USD 5bln, according to Bloomberg citing sources. (Bloomberg)

BROKER MOVES

Sonova (SOON SW) downgraded to Sell from Neutral at UBS

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -0.29% at 5,150, NDX -0.30% at 18,014, DJIA -0.35% at 38,905, RUT -1.96% at 2,031.

SECTORS: Real Estate -1.61%, Utilities -0.81%, Consumer Staples -0.78%, Financials -0.71%, Materials -0.55%, Consumer Discretionary -0.43%, Health -0.43%, Industrials -0.43%, Technology -0.11%, Communication Services +0.55%, Energy +1.1%.

Apple (AAPL) - Buys AI startup DarwinAI as part of race to add features; has added dozens of DarwinAI staff to its AI division, according to Bloomberg. (Bloomberg)

Adobe Inc (ADBE) - Q1 2024 (USD): Adj. EPS 4.48 (exp. 4.38), Revenue 5.18bln (exp. 5.14bln), announces new USD 25bln share repurchase program. Co. drove record Q1 revenue demonstrating strong momentum across Creative Cloud, Document Cloud and Experience Cloud. The chair and CEO said they have done an incredible job harnessing the power of generative AI to deliver ground-breaking innovation across our product portfolio. Co noted Q1 results and record RPO reflect strong customer adoption of their innovative products and services. Sees Q2 Adj. EPS USD 4.35-4.40 (exp. 4.39). Sees Q2 rev. 5.25bln-5.30bln (exp. 5.30bln). (Newswires) Shares -10.9% after-hours

Intel (INTC) - Has decided to postpone its potential investment in Italy, according to the Industry Minister, who says the country is here for them should they decide to come back. (Newswires)

Ulta Beauty (ULTA) - Shares fell 6.7% after hours as FY guidance came in on the soft side. Q4 EPS 8.08 (exp. 7.53), Q4 revenue USD 3.6bln (exp. 3.53bln). Approves a USD 2bln stock buyback programme. Q4 comp sales +2.5% (exp. +2.2%), Q4 gross margin 37.7% (exp. 37.3%), Q4 merchandise inventories USD 1.74bln (exp. 1.76bln). In commentary, it said that the beauty industry remained competitive despite the recent slowdown from a post-pandemic boost. Execs noted that markdowns were more aggressive in the FY, but still below levels seen in 2019. Demand for prestige-tier beauty products has been under pressure as those items get sold in more places. Execs added that it is mindful of the near-term macro environment, which remains dynamic, but it was optimistic about the resiliency of the beauty category. Sees FY net sales between USD 11.7-11.8bln (exp. 11.7bln), FY adj. EPS between 26.20-27.00 (exp. 27.06), and FY comp sales growth of +4-5% (exp. +5-5.5%). (Newswires)

Nucor (NUE) - The steel producer guided Q1 earnings in the range of USD 3.55-3.65 (exp. 3.83). It said the steel mills segment's earnings were expected to increase in Q1 due to higher average selling prices and volumes, particularly at its sheet mills. Earnings in the steel products segment were expected to decrease in Q1 due to lower average selling prices and decreased volumes. Expects Q1 earnings in the raw materials segment to be comparable to Q4, as improved performance of its DRI facilities is offset by lower margins at scrap processing operations.

15 Mar 2024 - 06:53- Research Sheet- Source: Newsquawk