Newsquawk Daily European Equity Opening News - 23rd February 2023

23rd February 2023

ASIA

Asia-Pac stocks lacked firm direction with price action mostly rangebound amid thinned conditions due to the holiday closure in Japan and following the mixed performance stateside where the major indices faded mild gains in the aftermath of the FOMC minutes, which noted that a few participants favoured raising rates by 50bps and all agreed more rate hikes were needed. ASX 200 (-0.4%) was the laggard with the index weakened by underperformance in the mining industry after recent declines in commodity prices and a slump in Rio Tinto’s profits, although losses are limited as participants also digested better-than-expected capex data. KOSPI (+1.0%) was the biggest gainer amid recent currency weakness and after the BoK kept its rate unchanged for the first time in a year, as unanimously expected. Hang Seng (Flat) and Shanghai Comp. (-0.2%) were indecisive with stocks initially led higher by strength in tech and after China vowed to improve measures to cut taxes and fees, although the gains were briefly pared amid ongoing global frictions and the PBoC’s liquidity drain. Conversely, US equity futures recovered overnight led by Nasdaq 100 futures after NVIDIA's earnings topped forecasts which boosted its shares by nearly 9% after-hours.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -0.18% at 4,242, FTSE 100 -0.59% at 7,930, DAX 40 +0.01% at 15,399, CAC 40 -0.13% at 7,299, FTSE MIB -1.12% at 27,101, IBEX 35 -0.86% at 9,172, SMI +0.15% at 11,299.

SECTORS: Consumer Stpl 0.75%, Telecoms 0.43%, Industrials 0.22%, Consumer Disc -0.16%, Healthcare -0.20%, IT -0.45%, Utilities -0.70%, Materials -0.95%, Energy -1.18%, Financials -1.20%

FTSE 100

John Wood (WG/ LN) - In response to the Betaville speculation regarding potential takeover interest, Co. confirmed three proposals by Apollo Global Management, with the most recent proposals being GBP 2.30/shr (vs GBP 1.5470 close on Wednesday) - the board has unanimously rejected each proposal. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

BP (BP/ LN) downgraded to Hold from Buy at Berenberg

DAX

Deutsche Telekom (DTE GY) - Q4 2022 (EUR): Revenue 29.8bln (exp. 30.2bln). Adj. EBITDAaL 9.96bln (exp. 9.86bln). Net 1.98bln (prev. 1.23bln Y/Y). Capex. 5.80bln (prev. 5.05bln). (Newswires)

HeidelbergCement (HEI GY) - FY22 (EUR): Revenue 21.1bln (prev. 18.7bln Y/Y). Operating EBIT 2.28bln (prev. 3.10bln). ROIC 9.1% (prev. 9.3%). CEO said demand in the construction sector is likely to remain mixed in the current year. (Newswires)

Mercedes-Benz (MBG GY) - Luminar (LAZR) and Mercedes-Benz have announced an expanded partnership to enable fully automated driving for next-gen vehicles. Mercedes has also partnered with Google (GOOGL) to develop branded navigation for its new MB.OS operating system. Separately, CFO expects EUR 1bln EBIT on software sales by 2025. (Newswires)

SAP (SAP GY) - NVIDIA (NVDA) said its new cloud service will be offered through Oracle (ORCL). Separately, Co. proposes Punit Renjen as the designated successor to Chairman Hasso Plattner, effective May 11th 2023. (Newswires)

OTHER GERMAN COMPANIES

Knorr-Bremse (KBX GY) - FY22 (EUR): Revenue 1.95bln (exp. 1.86bln). EBITDA 278.2mln (exp. 301mln). Co. notes of a very large orderbook. (Newswires)

Krones (KRN GY) – FY22 (EUR): Revenue 4.21bln (prev. 3.63bln Y/Y). EBITDA 373.3mln (prev. 312.6mln). Net 187.1mln (prev. 141.4mln). Order intake +19.4% Y/Y. (Newswires)

Munich Re (MUV2 GY) - Q4/FY22 (EUR): FY: Net Income 3.4bln (exp. 3.29bln), subject to AGM approval dividend will increase to 11.60/shr (exp. 11.42). Q4: Net Income 1.5bln (exp. 1.43bln). FY23 guidance: Net Income 4.0bln (exp. 4.04bln). (Newswires)

BROKER MOVES

Mercedes-Benz (MBG GY) reiterated with Overweight at JPMorgan Chase

CAC

AXA (CS FP) - FY22 (EUR): Revenue 102.4bln (prev. 99.9bln Y/Y). Net 6.68bln (prev. 7.29bln). Co. proposes a dividend of EUR 1.70/shr, +10% Y/Y. Co. is to launch a EUR 1.1bln share buyback programme. Co. sees FY underlying EPS growth above mid-term targets. (Newswires) Co. holds a 3.3% weighting in the CAC 40.

Bouygues (EN FP) - FY22 (EUR): Sales 44.3bln (exp. 42.9bln). Net Income 973mln (exp. 927mln), divided of 1.80/shr (exp. 1.80/shr). Aiming for 2023 sales close to 2022. (Newswires)

EssilorLuxottica (EL FP) - FY22 (EUR): Revenue 24.5bln (exp. 24.4bln). Adj. Net 2.86bln (exp. 2.63bln). Adj. operating profit 4.12bln (prev. 3.47bn Y/Y). Co. affirms FY22-25 revenue and adj. operating margin targets. (Newswires) Co. holds a 3.4% weighting in the CAC 40.

Vinci (DG FP) - Unconfirmed reports circulating that Qatar Holdings is to sell some 3mln shares in Vinci at around EUR 108.71/shr (vs EUR 109.14 close on Wednesday)

OTHER FRENCH COMPANIES

Accor (AC FP) - FY22 (EUR): Revenue 4.2bln (exp. 3.9bln), EBITDA 675mln (exp. 649mln), Net Income 402mln (exp. 195mln). Return of a dividend payout of 1.05/shr (exp. 0.472/shr). (Newswires)

Arkema (AKF FP) - FY22 (EUR): Revenue 11.6bln (prev. 9.52bln Y/Y). EBITDA 2.11bln (prev. 1.73bln). Adj. Net 1.17bln (prev. 896mln). EBITDA margin 18.3% (prev. 18.1%). Co. affirms FY24 targets. (Newswires)

Eiffage (FGR FP) - FY22 (EUR): Revenue 20.3bln (exp. 20.0bln). Operating profit 2.21bln (exp. 2.20bln). Net 896mln (exp. 892mln). Order book +13% Y/Y. (Newswires)

Getlink (GET FP) - FY22 (EUR): Revenue 1.61bln (prev. 774mln Y/Y). Net 252mln (exp. 404mln). EBITDA 886mln (prev. 297mln). (Newswires) Eiffage (FGR FP) executive said in the mid/long-term, Co. is open to increasing its stake in Getlink. (Newswires)

Group SEB (SK FP) - FY22 (EUR): Revenue 7.96bln (prev. 8.06bln Y/Y). Adj. EBITDA 874mln (prev. 1.04bln). Net 316mln (prev. 454mln). Guides Q1 revenue lower Y/Y and FY23 operating margin to improve Y/Y. (Newswires)

Nexity (NXI FP) - FY22 (EUR): Revenue 4.70bln (exp. 4.60bln). Operating profit 367mln (exp. 366mln). Operating margin 7.8% (prev. 8.0% Y/Y). (Newswires)

BROKER MOVES

Eiffage (FGR FP) reiterated with Overweight at JPMorgan Chase

PAN EUROPE

Chip Names - NVIDIA (NVDA) shares rose 8.9% post-earnings after topping expectations and announcing that it is moving faster to a “new business model” of selling AI services directly to large companies and governments.

Eni (ENI IM) – Q4 2022 (EUR): Adj. net 2.50bln (exp. 2.60bln). Adj. operating profit 3.59bln (prev. 3.81bln). Production 1.62mln BOEPD (exp. 1.63mln BOEPD). (Newswires)

Fugro (FUR NA) - FY22 (EUR): Revenue 1.77bln (exp. 1.78bln). EBITDA 230.4mln (prev. 175.6mln). Net 74.1mln (prev. 71.1mln). (Newswires)

Pirelli (PIRC IM) - Q4 FY22 (EUR): Adj. EBIT 224mln (exp. 213mln), Revenue 1.58bln (exp. 1.50bln). Guides initial FY23 revenue view of EUR 6.6-6.8bln (exp. 6.7bln). (Newswires/Pirelli IR)

NH Hotel (NHH SM) - Revenue 1.76bln (prev. 834mln). Net 100.3mln (prev. -133.7mln). (Newswires)

Solvay (SOLB BB) - Q4 2022 (EUR): Revenue 3.29bln (exp. 3.25bln). Adj. EBITDA 736mln (prev. 572mln Y/Y). Co. targets a separation into two entities in December 2023. (Newswires)

Telefonica (TEF SM) – Q4 2022 (EUR): Revenue 10.2bln (exp. 10.16bln). OIBDA 3.26bln (exp. 3.3bln). Net 525mln (exp. 580mln). (Newswires)

BROKER MOVES

ASM International (ASM NA) initiated with Buy at Citi

KPN (KPN NA) downgraded to Hold from Buy at Berenberg

Unibail Rodamco (URW NA) upgraded to Neutral from Sell at Goldman Sachs

Wolters Kluwer (WKL NA) upgraded to Neutral from Underperform at Exane BNP

SMI

Roche (ROG SW) - Roche launches two new antibodies to identify key clinical mutations in patients with brain cancer. (Roche)

UBS (UBSG SW) - UBS is preparing to apply for a mutual-fund license in China, according to WSJ sources. (WSJ)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Electrolux (ELUXB SS) - "The French Competition Authority has issued a Statement of Objections involving various parties within the home appliance sector and where Electrolux France is alleged to have acted in breach of antitrust rules in France between 2009 and 2014. The Statement of Objections is currently being carefully analyzed and Electrolux is preparing its defense. Nevertheless, given the alleged infringements and the nature of this investigation, it cannot be ruled out that the outcome could have a material impact on the Group’s financial result and cash flow. At this stage it is however not possible to evaluate the extent of such an impact." (Electrolux)

BROKER MOVES

US

CLOSES: SPX -0.16% at 3,991, NDX +0.05% at 12,066, DJI -0.26% at 33,045, RUT +0.34% at 1,895.

SECTORS: Real Estate -1.02%, Energy -0.77%, Utilities -0.42%, Health Care -0.33%, Consumer Staples -0.27%, Industrials -0.26%, Financials -0.2%, Technology -0.14%, Communication Svs. -0.05%, Consumer Discretionary +0.52%, Materials +0.67%.

Apple (AAPL) - Co. reportedly had a breakthrough in its secret bid to track glucose on Watch, according to Bloomberg. (Newswires)

eBay Inc (EBAY) - Q4 2022 (USD): EPS 1.07 (exp. 1.06), Revenue 2.51bln (exp. 2.47bln). Q4 GMV 18.2bln (exp. 17.97bln). Sees Q1 adj. EPS 1.05-1.09 (exp. 1.06). Sees Q1 rev. 2.46bln-2.50bln (2.37bln). (PR Newswire) Shares fell 5.3% after-market

Lucid Group Inc (LCID) - Q4 2022 (USD): EPS -0.28 (exp. -0.41), Revenue 258mln (exp. 315mln), Vehicles Delivered 1,932 (exp. 2,831). FY23 vehicle production guidance 10-14k. (Lucid IR) Shares fell 9.3% after-market

NVIDIA Corp (NVDA) - Q4 2023 (USD): Adj. EPS 0.88 (exp. 0.81), Revenue 6.05bln (exp. 6.01bln). Guides Q1 rev. 6.50bln (exp. 6.33bln). Co. said it is moving faster to a “new business model” of selling AI services directly to large companies and governments. Co. said its new cloud service will be offered through Oracle (ORCL). (GlobeNewswire) Shares rose 8.9% after-market

23 Feb 2023 - 06:49- Research Sheet- Source: Newsquawk