Newsquawk Daily European Equity Opening News - 6th February 2024

6th February 2024

ASIA

APAC stocks were somewhat mixed as Chinese market stabilisation efforts offset the early headwinds from Wall Street where yields climbed to YTD highs after hot ISM Services data and recent hawkish Fed rhetoric. ASX 200 declined with weakness in tech and real estate amid rising yields, while attention was also on the RBA which maintained its rates as expected and reiterated its hawkish rhetoric. Nikkei 225 was subdued after disappointing household spending and soft wage data but with the downside cushioned amid a slew of earnings releases. Hang Seng and Shanghai Comp outperformed with sentiment boosted by China's latest market stabilisation efforts including reports China's sovereign fund will further increase ETF holdings, while the CSRC also encouraged listed firms to buy back more shares to inject more capital into the A-share market.

Toyota (7203 JT) - 9-month net rose 107.9% Y/Y to 3.95tln, oper. profit rose 102.1% Y/Y to 4.24tln, Co. raises FY net forecast to 4.90tln from 3.95tln but slightly cuts FY24 global vehicle sales view to 11.23mln from 11.38mln units. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -0.08% at 16,904.06, FTSE 100: -0.04% at 7,612.86, CAC 40: -0.03% at 7,589.96, Euro Stoxx 50: -0.02% at 4,653.85, IBEX 35: -1.20% at 9,941.30, FTSE MIB: +0.76% at 30,952.79, SMI: +0.31% at 11,274.20.

SECTORS: Consumer Stpl 1.12%, Healthcare 1.12%, IT 0.82%, Utilities -0.17%, Consumer Disc -0.23%, Financials -0.35%, Industrials -0.77%, Energy -0.85%, Materials -0.85%, Telecoms -1.01%  

FTSE 100

BP (BP LN) - Whiting, Indiana refinery (435k BPD) is continuing assessment following a power outage, according to Reuters. (Reuters)

Rio Tinto (RIO LN) - A Canadian unit of Rio Tinto is facing a criminal case after an employee was seriously injured at an Arctic diamond mine, according to an announcement by local authorities cited by Reuters. (Reuters)

OTHER UK COMPANIES

BROKER MOVES

Entain (ENT LN) downgraded to Equalweight from Overweight at Barclays

J Sainsbury's (SBRY LN) upgraded to Buy from Hold at HSBC

DAX

Bayer (BAYN GY) - Enters into an agreement with Tetrascience. (Newswires)

Infineon (IFX GY) - Q1 (EUR): EPS 0.44 (exp. 0.46), Revenue 3.7bln (exp. 3.83bln). Cuts outlook citing market environment outside automotive remains weak and does not expect noticeable recovery in demand until H2'24. Guides Q2 Revenue approx. 3.6bln (exp. 4.1bln). Segment result margin approx. 18%. Provides FY24 Guidance: Cuts FY24 Revenue 15.5-16.5bln (exp. 18.2bln, prev. guidance 16.5-17.5bln), adj. gross margin "low to mid 40s %" (prev. guidance 45%), adj. FCF 1.8bln (prev. guidance 2.2bln). (Newswires) Shares -6.8% in pre-market trade.

OTHER GERMAN COMPANIES

Aurubis (NDA GY) - Q1 (EUR): PBT 111mln (exp. 110mln). FY Guidance: EBIT 380-480mln (exp. 449mln). Anticipates demand for metals the firm producers will remain strong overall. (Newswires) -1.5% in pre-market trade.

MorphoSys (MOR GY) - Enters into an agreement to be acquired by Novartis (NOVN SW) for EUR 2.7bln or EUR 68/shr equity value and into an agreement with Incyte (INCY) for the sale of Tafasitamab. Confirms Reuters sources from 5th February 2024. MorphoSys last closed at EUR 57.40/shr. Shares +15.9% in pre-market trade.

Software AG (SOW GY) - FY24 Revenue growth view between 0% to +2% (exp. +5.6%); FY OM view of 20-21%. (Newswires)

BROKER MOVES

MorphoSys (MOR GY) upgraded to Neutral from Sell at Citi

Metro (B4B GY) downgraded to Reduce from Hold at HSBC

CAC

Dassault Systemes (DSY FP) - Co. and Assystem partner to accelerate the development of advanced modular reactors. (Newswires)

Total (TTE FP) - Port Arthur, Texas refinery (185k BPD) restarts; operating at minimum rates; preparing to restart gasoline-producing FCC, according to Reuters sources. (Reuters)

OTHER FRENCH COMPANIES

Eutelsat (ETL FP) - Moody's cuts rating to Baa3. (Newswires)

Scor (SCR FP) – January Conditions: growing preferred lines of business in attractive market conditions regarding renewal results, in-line with the 2026 strategic plan. Portfolio growth will continue across the year, incl. a strong pipeline of alternative solutions contracts. (Newswires)

BROKER MOVES

Legrand (LR FP) upgraded to Hold from Underperform at Jefferies

PAN EUROPE

Grifols (GRF SM) - To appoint Nacho Abia as CEO, effective April 1st. Raimon and Victor Grifols to step down as executives, but will remain on the board. (Newswires)

BROKER MOVES

Acciona Energias (ANE SM) downgraded to Sell from Neutral at Goldman Sachs

Ahold Delhaize (AD NA) downgraded to Reduce from Hold at HSBC

SMI

UBS (UBSG SW) Q4 (USD): Net -279mln (exp. -246mln, guidance -285mln), Underlying PBT 593mln (guidance 667mln), Revenue 10.86bln (exp. 11.3bln, guidance 11.04bln), Co. is to resume share buybacks with up to USD 1bln repurchase expected this year. Targets 13bln gross cost reductions by end-2026. Merger with Credit Suisse planned to be completed by the end Q2'24. Affirms end-2026 targets. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

ABB (ABBN SW) upgraded to Buy from Hold at Center for Financial Research & Analysis

Schindler Holding (SCHP SW) upgraded to Buy from Sell at SocGen

SCANDINAVIA

Alfa Laval (ALFA SS) - Q4 (SEK): EPS 3.77 (prev. 3.00 Y/Y), Adj. EBITDA 2.83bln (exp. 3.32bln, prev. 2.52bln Y/Y), Revenue 17.8bln (exp. 17.74bln, prev. 16.5bln Y/Y). (Newswires)

Demant (DEMANT DC) - FY23 (DKK): Adj. EBIT 4.2bln (exp. 4.61bln, prev. 3.6-3.9bln Y/Y), Revenue 22.4bln (exp. 22.5bln). Guides initial FY24 EBIT 4.6-5bln (exp. 4.7bln), Organic Revenue +4-8%. (Newswires)

Lagercrantz (LAGRB SS) – Q3 (SEK): Net 225mln (prev. 199mln Y/Y), EBITA 353mln Y/Y), Revenue 2.05 (exp. 2.06bln). (Newswires)

Nordic Semiconductor (NOD NO) - Q4 (USD): EBITDA -6.9mln (exp. +3.9mln), Revenue 108mln (exp. 118mln). Guides Q1 Revenue 70-80mln (exp. 115mln), gross margin 50% (exp. 50.2%). Bluetooth customers remain cautious, continued to draw on inventories in Q4. Market is in a cyclical slowdown with macro headwinds. Proprietary revenue is beginning to stabilise, but at a low level, whole cellular IoT revenue showed a sequential improvement. Not offering revenue guidance beyond Q1, which is seen at 70-80mln. (Newswires)

Novo Nordisk (NOVOB DC) - FDA updates Wegovy injection shortages, saying availability remains limited with uncertain duration. (Newswires)

BROKER MOVES

AB SKF (SKFB SS) upgraded to Equal Weight from Underweight

Industrivarden (INDUA SS) downgraded to Hold from Buy at DNB Markets

Rockwool (ROCKB DC) upgraded to Neutral from Underweight at JP Morgan

US

CLOSES: SPX -0.32% at 4,943, NDX -0.17% at 17,613, DJI -0.71% at 38,380, RUT -1.3% at 1,937

SECTORS: Materials -2.52%, Utilities -2.03%, Real Estate -2%, Consumer Discretionary -1.32%, Communication Services -0.82%, Financials -0.61%, Consumer Staples -0.6%, Industrials -0.54%, Energy -0.23%, Health +0.31%, Technology +0.58%.

NXP Semiconductors NV (NXPI) - Q4 2023 (USD): Adj. EPS 3.71 (exp. 3.65), Revenue 3.42bln (exp. 3.39bln). Co. said it is navigating a soft landing by managing what is in its control, especially limiting over shipment of products to customers. Sees Q1 Adj. EPS USD 2.97-3.38 (exp. 3.17). Sees Q1 revenue USD 3.03bln-3.23bln (exp. 3.17bln). (Newswires) Shares +3.6% after-hours

Palantir (PLTR) - Q4 23 (USD): Adj. EPS 0.08 (exp. 0.08), revenue 608mln (exp. 602mln). Q124 revenue view 612-616mln (exp. 617mln). FY revenue view 2.652-2.668bln (exp. 2.66bln). (Newswires) Shares +17.2% after-hours

Semiconductors - US Commerce Secretary Raimondo said the US will announce several more semiconductor chips funding announcements over the next six to eight weeks, adding that there was no artificial timeline, adding that the US will award funds as quick as possible.

06 Feb 2024 - 06:54- MetalsResearch Sheet- Source: Newsquawk