Newsquawk Daily European Equity Opening News - 30th November 2023

30th November 2023

ASIA

Asia-Pac stocks were mixed and indecisively capped off this month’s notable gains as the Israel-Hamas truce hung in the balance before the announcement of a last-minute one-day extension, while participants also digested a slew of key data releases including disappointing Chinese official PMI figures. ASX 200 (+0.7%) was choppy after mixed data in which Building Approvals topped forecast and Private Capital Expenditure missed estimates. Nikkei 225 (+0.3%) swung between gains and losses amid recent currency strength and with better-than-expected Industrial Production offset by softer Retail Sales. KOSPI (+0.1%) was just about kept afloat following the unsurprising decision by the BoK to keep rates unchanged and noted that it will maintain a restrictive policy stance for a sufficiently long period until the board is confident inflation will converge to the target level. Hang Seng (-0.1%) and Shanghai Comp. (-0.1%) were indecisive with only brief pressure seen after the Chinese PMI data showed a slightly steeper contraction in China’s factory activity which raises the prospects for further supportive measures, while it was also recently reported that the Biden administration is to announce tax credit rules to curb China’s role in the US EV market.

EUROPEAN CLOSES

CLOSES: DAX +1.09% at 16,166.45, FTSE 100 -0.43% at 7,423.46, CAC 40 +0.24% at 7,267.64, Euro Stoxx 50 +0.52% at 4,370.65, IBEX 35 +0.59% at 10,062.60, FTSE MIB +1.06% at 29,688.45, SMI +0.35% at 10,798.10.

SECTORS: IT 1.74%, Consumer Disc 0.89%, Industrials 0.75%, Healthcare 0.42%, Telecoms 0.41%, Financials 0.38%, Utilities 0.17%, Materials 0.16%, Consumer Stpl -0.21%, Energy -1.23%

FTSE 100

Ex-Dividends - 3i Group (III LN), Severn Trent (SVT LN) will trade without entitlement to their latest dividend payout. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Big Yellow (BYG LN) initiated with Hold at Berenberg

B&M (BME LN) upgraded to Buy from Hold at Peel Hunt

ConvaTec (CTEC LN) assumed with Buy at Jefferies

NatWest (NWG LN) upgraded to Overweight from Neutral at JP Morgan

Smith & Nephew (SN/ LN) initiated with Buy at Jefferies

Virgin Money (VMUK LN) downgraded to Add from Buy at Peel Hunt

Unite Group (UTG LN) initiated with Hold at Berenberg

DAX

Mercedes-Benz (MBG GY), BMW (BMW GY) - To cooperate on a fast-charging network for EVs in China via a joint JV; stations to start operating in 2024 with 1000 planned by 2026. (Newswires)

SAP (SAP GY) - Salesforce Inc (CRM) - Q3 2024 (USD): Adj. EPS 2.11 (exp. 2.06), Revenue 8.72bln (exp. 8.72bln). Better than-expected earnings and upbeat guidance helped CRM shares surge almost 9% in the US after-hours trading. (Newswires) SAP. holds a 10.49% weighting in the Dax 40; and 1.4% weighting in the Stoxx600

OTHER GERMAN COMPANIES

Siltronic (WAF GY) - Targets FY28 Revenue >2.2bln, EBITDA margin to reach the high 30s percentage area. Expects that at least H1'24 will still be burdened by high inventories as chip manufacturers and their customers. (Newswires)

Thyssenkrupp (TKA GY) - Appoints Dr Jens Schulte as successor to Klaus Keysberg as CFO. (Newswires)

BROKER MOVES

Siemens Healthineers (SHL GY) assumed with Buy at Jefferies

CAC

BNP Paribas (BNP FP) - Is to end research outsourcing pact with Morningstar. (Newswires)

Eiffage (FGR FP) - Co. and Sodeports signed the concession of EUR 80mln contract to operate and develop the 10 marinas on the Bay of Toulon starting in 2025. (Newswires)

OTHER FRENCH COMPANIES

Remy Cointreau (RCO FP) - H1 (EUR): Net 113mln (prev. 223.8mln Y/Y), Op. 169.1mln (exp. 183mln), Revenue 636.7mln (prev. 867.1mln Y/Y), Net debt//EBITDA ratio 1.57x (prev. 0.65x Y/Y). (Newswires)

BROKER MOVES

STMicroelectronics (STM FP) upgraded to Overweight from Neutral at JP Morgan

PAN EUROPE

Autos - UAW launches bid to organize Tesla (TSLA) and the entire non-union auto sector, including TSLA, Toyota (TM), Volkswagen (VOW3 GY), Hyundai (005380 SK), Rivian (RIVN), Nissan (7201 JT), BMW (BMW GY) and Mercedes-Benz (MBG GY), according to Reuters. The automakers employ c. 150k workers at their US assembly plants, similar to the Detroit Three. (Reuters)

ASML (ASML NA) - Board proposes current Chief Business Officer Foquet as President and CEO. (Newswires)

ASR Nederland (ASRNL NA) - Closes unit-linked life insurance file, total provision taken is EUR 300mln. (Newswires)

Luxury Names - PVH (PVH) - PVH returned to profit in Q3, lifting its full-year earnings outlook, although the guidance disappointed those who expected better after the performance of its peers of late. Q3 adj. EPS 2.90 (exp. 2.74), Q3 revenue USD 2.36bln (exp. 2.41bln). Shares seen -4.5% in after-hours trade

BROKER MOVES

Amplifon (AM IM) assumed with Buy at Jefferies

Phillips (PHIA NA) assumed with Underperform at Jefferies

Leonardo (LDO IM) resumed with Overweight at JP Morgan

OCI (OCI NA) downgraded to Hold from Buy at Jefferies

SMI

ABB (ABBN SW) - Raises target for long-term comparable revenue growth to +5-7% (prev. guidance +3-5%), adjusts Basic EPS at least high single digit (prev. guidance greater than Revenue growth). (Newswires)

VAT Group (VACN SW) - Ends short-time work due increased demand for Advanced Industrials products and to prepare for future growth. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Sonova (SOON SW) assumed with Buy at Jefferies

Straumann (STMN SW) assumed with Hold at Jefferies

VAT Group (VACN SW) upgraded to Overweight from Neutral at JP Morgan

SCANDINAVIA

Huhtamaki (HUH1V FH) - Accelerates strategy implementation by starting a three-year program to bring EUR 100mln cost savings. (Newswires)

Orsted (ORSTED DC) - Secures 1.6 GW electricity business license for offshore wind project off the coast of Korea. (Newswires)

Outokumpu (OUT1V FH) - Launches a share buyback program of a maximum of 11mln shares. In other news, negotiated a long-term extension to its partnership with AM/NS until 2051. (Newswires)

BROKER MOVES

Coloplast (COLOB DC) assumed with Buy at Jefferies

Demant (DEMANT DC) assumed with Underperform at Jefferies

Ericsson (ERICB SS) downgraded to Neutral from Overweight at JP Morgan

Elekta (EKTAB SS) assumed with Hold at Jefferies

GN Store Nord (GN DC) assumed with Buy at Jefferies

Nokia (NOKIA FH) downgraded to Neutral from Overweight at JP Morgan

US

CLOSES: SPX -0.09% at 4,550, NDX -0.14% at 15,987, DJIA +0.04% at 35,430, RUT +0.61% at 1,803.

SECTORS: Real Estate +0.73%, Financials +0.71%, Materials +0.38%, Industrials +0.33%, Health +0.02%, Technology +0.01%, Consumer Discretionary -0.35%, Utilities -0.79%, Consumer Staples -0.81%, Energy -0.88%, Communication Services -1.12%.

Microsoft (MSFT) - Is to take a non-voting, observer position on OpenAI's board, according to Bloomberg. (Bloomberg)

Occidental Petroleum (OXY) - Intalks to buy Permian producer CrownRock which could value the latter over USD 10bln, according to WSJ. (WSJ)

PVH (PVH) - PVH returned to profit in Q3, lifting its full-year earnings outlook, although the guidance disappointed those who expected better after the performance of its peers of late. Q3 adj. EPS 2.90 (exp. 2.74), Q3 revenue USD 2.36bln (exp. 2.41bln). Calvin Klein Total revenue USD 1.02bln (exp. 1.02bln), with sales of 375.5mln in North America (exp. 369.9mln), and USD 646.7mln internationally (exp. 648mln). Tommy Hilfiger sales revenue USD 1.21bln (exp. 1.25bln), with sales of USD 359.2mln in North America (exp. 344.2mln), and USD 850.7mln internationally (exp. 903.2mln). PVH sees Q4 EPS at USD 3.45 (exp. 3.51), and sees FY EPS around USD 10.45 (prev. 10.35, exp. 10.35); FY revenue growth is seen at +1% (prev. +3-4%). Shares seen -4.5% in after-hours trade

Salesforce (CRM) - Better than expected earnings and upbeat guidance helped CRM shares surge almost 9% in US afterhours trading. Q3 adj. EPS 2.11 (exp. 2.06), Q3 revenue USD 8.72bln (exp. 8.72bln). Q3 professional services and other revenue USD 579mln (exp. 621.5mln), Q3 adj. income from operations USD 2.72bln (exp. 2.64bln), Q3 adj. operating margin 31.2% (exp. 30.4%), Q3 FCF 1.37bln (exp. 898.3mln). Sees Q4 revenue between USD 9.18-9.23bln (exp. 9.22bln), and sees Q4 adj. EPS between 2.25-2.26 (exp. 2.17); raises its FY24 EPS outlook to between USD 8.18-8.19 (prev. 8.04-8.06, exp. 8.06), and sees FY24 revenue between USD 34.75-34.8bln (prev. 34.7-34.8bln, exp. 34.80bln).

30 Nov 2023 - 06:51- Research Sheet- Source: Newsquawk