Newsquawk Daily European Equity Opening News - 25th April 2023

25th April 2023

ASIA

APAC stocks were mostly lower after the mixed performance in the US where sentiment was clouded by a disappointing Dallas Fed Manufacturing survey and the tech sector was among the laggards ahead of the upcoming big tech earnings, with the mood in the Asia-Pac region also contained amid the closures in Australia and New Zealand for ANZAC Day. Nikkei 225 was positive amid softer Services PPI data and after the government raised its view on imports for the first time since July last year, while BoJ Governor Ueda repeated that the BoJ sees it appropriate to maintain YCC and easy monetary policy given the current economic, price and financial developments. KOSPI failed to hold on to early gains after South Korean GDP printed mixed but still showed the economy averted a recession. Hang Seng and Shanghai Comp weakened with Hong Kong pressured by underperformance in tech and after the local benchmark slipped beneath the 20k level, although losses in the mainland were stemmed following another firm PBoC liquidity injection and reports that China urged banks to cut deposit rates.

Hyundai Motor (005380 KS) - Q1 (KRW) net 3.3tln (exp. 2.3tln), oper. profit 3.6tln (exp. 3.0tln), rev. 37.8tln (exp. 36.1tln). Hyundai Motor plans to invest KRW 1.62tln won to build battery JV with SK On in North America and SK Innovation (096770 KS) plans to invest KRW 1.95tln in the JV (Newswires)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.04% at 4,401, FTSE 100 -0.02% at 7,912, DAX 40 -0.11% at 15,863, CAC 40 -0.04% at 7,573, FTSE MIB -0.75% at 27,537, IBEX 35 -0.10% at 9,406, SMI +0.03% at 11,464.

SECTORS: Energy 0.57%, Industrials 0.22%, Financials 0.22%, Healthcare 0.08%, Materials 0.03%, Utilities -0.22%, Consumer Disc -0.24%, Consumer Stpl -0.57%, Telecoms -0.69%, IT -0.98%

FTSE 100

Centrica (CNA LN) - Unconfirmed reports suggest a holder reportedly filed to sell 150mln shares at GBP 1.1015/shr (vs 1.1385 close on Monday). (Newswires)

UK Supermarkets - The latest Kantar grocery market share figures will be released at 08:00BST. (Kantar)

OTHER UK COMPANIES

BROKER MOVES

DAX

Bayer (BAYN GY) - CEO reaffirmed 2023 sales outlook of EUR 51-52bln (exp. 50.7bln) based on prior year exchange rates; EBITDA view 12.50-13.00bln (exp. 12.9bln), according to the AGM speech. FY EPS view 7.20-7.40 (exp. 7.27). (Newswires)

OTHER GERMAN COMPANIES

Daimler Truck (DTG GY) - Prelim. Q1 2023 (EUR): Adj. EBIT 1.16bln (exp. 980mln). Co. said it significantly exceed market expectations. Co. said it was supported by strong demand and an increase in unit sales Y/Y. (Newswires)

BROKER MOVES

Delivery Hero (DHER GY) initiated with Buy at SocGen

HelloFresh (HFG GY) initiated with Buy at SocGen

SAP (SAP GY) upgraded to Buy from Neutral at Citi

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

Rexel (RXL FP) reiterated with Buy at Goldman Sachs

PAN EUROPE

Akzo Nobel (AKZA NA) - Q1 2023 (EUR): Revenue 2.66bln (exp. 2.60bln). Adj. operating profit 218mln (exp. 178.5mln). Adj. EBITDA 305mln (exp. 274.5mln). Pricing +7%, "more than offsetting increase of raw material and freight costs." CEO said: “We were able to achieve a strong sequential improvement in profitability based on solid margin management, better than anticipated volumes in Europe and rebound in China, benefiting both Paints and Coatings." (Akzo Nobel IR/Newswires)

Randstad Holdings (RAND NA) - Q1 2023 (EUR): Revenue 6.52bln (exp. 6.58bln), EBITDA 266mln (prev. 286mln). Net 154mln (prev. 209mln). (Newswires)

Santander (SAN SM) - Q1 2023 (EUR): Revenue 13.9bln (exp. 13.8bln). Net 2.57bln (exp. 2.40bln). Pretax Profit 4.1bln. Co. is on track to meet its 2023 targets. RoTE 14.3% (prev. 12.8% Q/Q). NII 10.4bln (prev. 10.2bln Y/Y). CET1 ratio 12.2% (prev. 12.0%). (Newswires)

BROKER MOVES

ASR Nederland (ASRNL NA) initiated with Outperform at BNP Paribas

SMI

ABB (ABBN SW) - Q1 2023 (USD): Revenue 7.86bln (exp. 7.55bln). Net 1.04bln (exp. 877mln). Co. raises its FY23 revenue outlook to at least +10% (prev. above +5%). Co. plans to delist its ADRs from the NYSE around the 23rd of May. Operational EBITDA margin 16.3% (prev. 14.3%) - Co. adjusts its Operational EBITDA margin guidance to improve (prev. over 15%). Orders 9.45bln (exp. 8.37bln). (Newswires)

Nestle (NESN SW) - Q1 2023 (CHF): Revenue 23.47bln (exp. 23.82bln), Organic Revenue +9.3% (exp. +7.25%). Confirms FY outlook for organic growth of 6-8%. CEO: Co. confirms its FY23 outlook. Co. says "demand elasticity and consumer downtrading remained limited in the context of pricing actions. Growth was broad-based across most geographies and categories. Organic growth was 8.6% in developed markets, led by pricing." Organic growth in emerging markets was 10.3%, driven by pricing and positive RIG. Organic Growth Breakdown: N. America: 11.6%, Europe: 9.7%, Asia, Oceania & Africa: 10.4%, Latin America: 12.8%, Greater China: 3.1%. (Nestle IR/Newswires). Co. holds a 3.1% weighting in the Stoxx 600; 10.2% weighting in the Stoxx Europe 600 Optimised Consumer Staples Index.

Novartis (NOVN SW) - Q1 2023 (USD): Revenue 12.95bln (exp. 12.53bln). Adj. EPS 1.71 (exp. 1.57). Zolgensma sales 309mln (exp. 340.8mln). Entresto sales 1.40bln (exp. 1.30bln). Sandoz sales +8% Y/Y. Co. raises FY23 guidance: Group Sales expected to grow mid-single digits (prev. low-to-mid single digits), and Group Core Opinc expected to grow high single digits (prev. mid-single digits). Planned Sandoz spin-off remains on track for 2H; Spinoff is expected to be tax neutral to Novartis. (Novartis IR/ Newswires) Co. holds a 1.9% weighting in the Stoxx 600.

UBS (USBG SW) - Q1 2023 (USD) WM Net Fee-generating assets USD 19.7bln (exp. 17.67bln). Co. takes provisions of USD 665mln for RMBS litigation. Total Revenue 8.74bln (exp. 8.96bln). ROTE +8.1% (exp. +14.6%), CET1 Ratio 13.9% (prev. 14.3%). MGMT pretax income 1.22bln (exp. 1.28bln). Focused on completing Credit Suisse (CSGN SW) acquisition in Q2 2023. INFLOWS: "In the first quarter, we maintained positive momentum across the firm and attracted USD 28bn of net new money in GWM, of which USD 7bn came in the last ten days of March, after the announcement of our acquisition of Credit Suisse." (UBS IR/Newswires) Co. is the largest weighted stock in the European financial services sector.

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.09% at 4,137, NDX -0.24% at 12,969, DJIA +0.20% at 33,875, RUT -0.15% at 1,788.

SECTORS: Energy +1.54%, Materials +0.69%, Health +0.56%, Utilities +0.5%, Consumer Staples +0.4%, Industrials +0.23%, Communication Services -0.01%, Consumer Discretionary -0.07%, Financials -0.2%, Real Estate -0.31%, Technology -0.42%.

First Republic Bank (FRC) - Q1 2023 (USD): EPS 1.23 (exp. 0.72), Revenue 1.2bln (exp. 1.22bln); Deposits 104.47bln (exp. 136.67bln), down 1.7% from March 31st. Loans at end-period 173.31bln (exp. 168.31bln). NIM 1.77% (exp. 1.8%). NII 923mln (exp. 889.9mln). Provision for credit losses 16mln (exp. 22.2mln). COMMENTARY: Working to restructure balance sheet and to reduce expenses. With closure of several banks in March, experienced unprecedented deposit outflows. Pursuing strategic options to expedite its progress while reinforcing its capital position. Cutting workforce by about 20-25% in Q2. (Newswires) Shell fell 22.2% after-hours

25 Apr 2023 - 06:46- Research Sheet- Source: Newsquawk