Newsquawk Daily European Equity Opening News - 26th February 2025

ASIA

APAC stocks traded mixed as a tech rally in China offset the weak handover from Wall St where the Nasdaq led the declines once again and risk appetite was sapped by weak consumer confidence data. ASX 200 was led lower by weakness in mining, materials and consumer staples as participants digested disappointing Construction Work data which feeds into Australia's GDP and with supermarket operator Woolworths pressured post-earnings. Nikkei 225 fell beneath the 38,000 level for the first time this year with the index underperforming following recent currency strength although was off worst levels as the yen then pared some of its recent advances. Hang Seng and Shanghai Comp gained with Hong Kong leading the advances amid tech strength and recent earnings, while Hong Kong continued to record a higher deficit for this year in the Budget and will increase the scale of bond issuances.

EUROPEAN CLOSES

CLOSES: DAX: -0.13% at 22,396, FTSE 100: +0.11% at 8,669, CAC 40: -0.49% at 8,051, Euro Stoxx 50: +0.08% at 5,453, AEX: -0.50% at 930, IBEX 35: +0.85% at 13,124, FTSE MIB: +0.63% at 38,715, SMI: +0.62% at 13,019, PSI: +1.47% at 6,919

SECTORS: Healthcare 1.07%, Financials 0.93%, Telecoms 0.53%, Utilities 0.35%, Consumer Stpl 0.27%, Consumer Disc 0.02%, Industrials -0.29%, Materials -0.68%, Energy -0.71%, IT -1.45%

FTSE 100

Anglo American (AAL LN) - Co. says Chile operations are without power supply; basic services are operating with backup equipment after massive blackout. (Newswires)

BP (BP/ LN) – BP and the Government of Iraq reached an agreement regarding the redevelopment of four large oil and gas fields in Northern Iraq; the deal could result in BP spending more than USD 25bln during the entire project, according to The Times. (The Times)

Rio Tinto (RIO LN) – Conducts first renewable diesel trial across Pilbara Iron Ore operations. (Newswires)

UK Jobs - BRC warned that UK retail could shed 160,000 part-time jobs over the next 3 years due to higher employer taxes and regulatory changes. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Burberry (BRBY LN) upgraded to Buy from Hold at Kepler

DAX

Deutsche Telekom (DTE GY) – Q4 (EUR): Revenue 30.9bln (exp. 30.52bln), Adj. EBITDAAL 10.63bln (exp. 10.78bln). Sees FY25: Adj. EBITDAAL 44.9bln; Adj. EPS 2.00 (exp. 2.04). (Newswires) Shares -1.8% in pre-market trade

Fresenius (FRE GY) – Q4 (EUR): Revenue 5.53bln (exp. 5.48bln), EBIT 646mln (exp. 634mln), EBIT Margin 11.7% (exp.11.6%). 2025 Outlook: Organic Revenue Growth 4-6%. (Newswires)

Munich Re (MUV2 GY) - FY (EUR): Group Result 5.67bln (exp. 5.62bln, prev. 4.60bln Y/Y). Notes that forest fire in LA exp. to cost around EUR 1.2bln. Outlook 2025: Sees Net Income 6bln. Co. plans dividend of EUR 20/shr for 2024; board has resolved purchase own shares amounting to a maximum value of EUR 2bln. (Newswires)

OTHER GERMAN COMPANIES

Covestro (1COV GY) – FY (EUR): Revenue 14.2bln (exp. 14.19bln, prev. 14.2bln Y/Y), EBITDA 1.08bln (exp. 1.07bln, prev. 1.07bln Y/Y). Outlook 2025: EBITDA of between 1-1.6bln. Expects EBITDA for Q1 of between 50-150mln. (Newswires)

E.on (EOAN GY) – FY (EUR): Revenue 80.1bln (prev. 93.7bln Y/Y); due to the lack of visibility regarding Germany’s future regulatory framework, investments for 2024-2028 will generally remain at the previous level. Increasing dividend to EUR 0.55/shr for 2024 proposal. Outlook: To increase Adj. EBITDA to EUR 9.6-9.8bln. (Newswires)

Evotec (EVT GY) – CFO Rouxel to step down effective 28 Feb 2025; Hitchin to succeed from 1 March 2025. (Newswires) Shares +3% in pre-market trade

Tag Immobilien (TEG GY) - FY (EUR): FFO 175.1mln (prev. guided 170-174mln), EBITDA 315.1mln (prev. 337mln Y/Y). Confirms 2025 guidance. (Newswires) Shares +3% in pre-market trade.

Linde (LIN GY) - Co. increases quarterly dividend by 8% to USD 1.50/shr

BROKER MOVES

CAC

Danone (BN FP) – Q4 (EUR): Revenue 6.72bln (exp. 6.6bln). Intends to buy back 2.7mln shares, in or more tranches in 2025. 2025: LFL Revenue +3-5%. (Newswires)

OTHER FRENCH COMPANIES

Eiffage (FGR FP) – Co. says APRR and Financiere Eiffarie renew their banking facilities for a total of EUR 2.4bln. (Newswires)

SES (SESG FP) – Q4 (EUR): Adj. EBITDA 253mln (exp. 224mln), Revenue 526mln (exp. 518mln). Guides initial FY25 Adj. EBITDA “broadly stake on better than expected outturn”. (Newswires)

Worldline (WLN FP) – Q4 (EUR): Revenue 4.68bln (exp. 4.59bln, prev. 4.61bln Y/Y), Adj. EBITDA 1.07bln. Italy is reluctant to do a Worldline deal as it mulls an option to take Nexi (NEXI IM) private, according to Reuters. (Reuters / Newswires)

BROKER MOVES

Covivo (COV FP) downgraded to Neutral from Buy at Goldman Sachs

Kering (KER FP) upgraded to Buy from Hold at Kepler

Hermes (RMS FP) downgraded to Hold from Buy at Kepler

LVMH (MC FP) upgraded to Buy from Hold at Kepler

PAN EUROPE

ASM International (ASM NA) - Q4 2024 (EUR): Revenue 809mln (exp. 796mln), adj. net income 231.5mln (exp. 178mln). Orders 731.4mln (exp. 771.mln). Backlog 1.57bln (exp. 1.57bln). Operating margin 27.5% (exp. 25.3%). Gross margin 503.% (exp. 48.4%). International revenue 809mln (exp. 791.8mln). To propose regular dividend of EUR 3.00/shr over 2024. Announced that its management board authorised a new repurchase programme of up to 150mln of the company's common shares within the 2025/26 time frame. Guidance: Sees Q1 revenue of 810-850mln (exp. 800.2mln). Confirms target for revenue, 3.2-3.6bln in 2025, but it's too early to provide a more specific forecast due to market uncertainty. China revenue is expected to decrease in 2025, with equipment sales from this market falling in range of low-to-high 20s percentage of total ASM revenue. (Newswires)

AB InBev (ABI BB) – Q4 (USD): Underlying EPS 0.88 (exp. 0.72), Revenue 14.8bln (exp. 14.4bln). Guides initial FY25 Organic Adj. EBITDA +4-8% Y/Y (exp. +5.9%). (Newswires)

Cellnex (CLNX SM) - FY (EUR): Revenue 3.91bln (exp. 4.12bln). 2025: Adj. EBITDA 3.28-3.38bln (prev. guided 3.4-3.5bln). (Newswires)

Gambling Names - New Jersey Governor Phil Murphy proposed raising the tax rate on online sports betting and iGaming to 25% in his FY2026 budget plan, aiming to generate an additional USD 402.4mln, according to local press reports. The move could end New Jersey’s status as a "controlled company." Other states, like Ohio and Maryland, are also considering tax hikes. (SBC)

Grifols (GRF SM) – Board will propose reducing the number of board members from 13 to 12. (Newswires)

JDE Peets (JDEP NA) – FY (EUR): Underlying Net Income 729mln (exp. 761mln), Adj. EBIT 1.28bln (exp. 1.26bln), Revenue 8.84bln (exp. 8.73bln). Plans a multi-year share buyback of up to EUR 1bln; up to EUR 250mln in 2025. 2025 outlook: High single-digit organic sales growth. Yang Xu to succeed Scott Gray as CFO in May (Newswires)

Saipem (SPM IM) - FY24 (EUR): Revenue 14.55bln (exp. 14.19bln). Orders EUR 18.8bln, expects FY25 revenue of 15.0bln with CapEx of c. 500mln

BROKER MOVES

SMI

Alcon (ALC SW) – Q4 (USD): Sales 2.47bln (exp. 2.46bln), EPS 0.72 (exp. 0.71). Outlook 2025: Sees Net Sales 10.2-10.4bln, Core Diluted EPS 3.15-3.25. (Newswires)

OTHER SWISS COMPANIES

Gerresheimer (GXI SW) – FY (EUR): Adj. EBITDA 419.4mln (prev. 404.5mln Y/Y). Outlook 2025: Adj. EBITDA margin is exp. to improve further to around 22%. (Newswires)

Georg Fischer (GF SW) – FY (CHF): Sales 4.77bln, +18.6%. Outlook 2025: Expects flat to lower single digit organic growth. (Newswires)

Straumann (STMN SW) – CFO Yang Xu to step down, effective May 2025. (Newswires)

BROKER MOVES

SCANDINAVIA

Jyske Bank (JYSK DC) - FY (DKK): Net Income 5.31bln (exp. 5.18bln), Net Revenue 13.7bln (exp. 13.6bln). Launches 2.25bln share buyback program. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.47% at 5,995, NDX -1.24% at 21,087, DJIA +0.37% at 43,621, RUT -0.38% at 2,170

SECTORS: Communication Services -1.53%, Energy -1.47%, Technology -1.37%, Consumer Discretionary -0.84%, Utilities -0.51%, Financials -0.10%, Industrials +0.53%, Materials +0.80%, Health +0.86%, Real Estate +1.14%, Consumer Staples +1.69%.

Caesars Entertainment (CZR) - Q4 EPS 0.05 (exp. -0.12), Q4 revenue USD 2.8bln (exp. 2.81bln). CEO noted stable Las Vegas conditions, regional pressures, and strong iGaming growth. Said Caesars Digital was negatively impacted by sports betting customer friendly outcomes in both October and December, while in the regional casinos, competitive pressures regionally offset partially by the openings in New Orleans and Danville late in the quarter. Expects significant free cash flow in 2025, driven by digital growth, lower capex, and reduced interest expenses. Sees EBITDA flat in H1, slightly up in H2.

Intuit (INTU) - Shares rose 5.8% in extended trading after Q2 earnings exceeded expectations, while FY25 guidance was reaffirmed; it raised its Q3 revenue forecast above estimates, driven by AI-driven tools and the US tax season; however, its profit outlook for the quarter fell short. It reported Q2 adj. EPS 3.32 (exp. 2.58), Q2 net revenue USD 3.96bln (exp. 3.83bln); Q2 service revenue USD 3.25bln (exp. 2.98bln). Sees Q3 adj. EPS between 10.89-10.95 (exp. 11.48), and sees Q3 revenue between USD 7.55-7.6bln (exp. 7.51bln). For the FY, reaffirms guidance; sees adj. EPS between 19.16-19.36 (exp. 19.29), and revenue between USD 18.16-18.35bln (exp. 18.28bln).

Lucid Group (LCID) - Lucid Group CEO Peter Rawlinson resigned, prompting a leadership search. Rawlinson led Lucid since 2019, and took it public in 2021, played a key role in developing its battery and motor technology. Marc Winterhoff, the operating chief, was appointed interim CEO, while Rawlinson remains an advisor. It reported Q4 adj. EPS of -0.22 (exp. -0.28), and Q4 revenue of USD 234.5mln (exp. 211.8mln). It produced 3,386 vehicles in Q4, and 9,029 vehicles in FY24, in line with its 2024 annual production guidance of 9,000 vehicles. It delivered 3,099 vehicles in Q4, and 10,241 vehicles in FY24 (+79% Y/Y and +71% Y/Y, respectively).

Super Micro (SMCI) - Super Micro shares rose up to 15.5% in extended trading after meeting a Nasdaq deadline to submit delayed regulatory filings, avoiding delisting. The company had faced accusations from Hindenburg Research regarding accounting manipulations, leading to SEC filing delays and a DoJ investigation. It reported Q2 EPS 0.51 (exp. 0.58), Q2 revenue USD 5.68bln (exp. 5.65bln). The company noted material weaknesses in internal controls over financial reporting, including IT system issues and segregation of duties. Despite this, management believes financial statements fairly present results in accordance with GAAP.

26 Feb 2025 - 06:59- Research Sheet- Source: Newsquawk