Newsquawk Daily European Equity Opening News - 6th May 2025

ASIA

APAC stocks were mostly higher as Chinese participants returned from the Labor Day holiday but with the gains capped following disappointing Chinese Caixin Services PMI data and as markets in Japan and South Korea remained closed. ASX 200 traded little changed as strength in the commodity-related sectors were predominantly offset by underperformance in financials and defensives, while the larger-than-expected contraction in building approvals clouded over risk appetite. Hang Seng and Shanghai Comp gained on return from the extended weekend and took their opportunity to react to the recent China tariff rhetoric from US President Trump who said that he is willing to lower tariffs on China at some point, while the miss on Caixin Services PMI data did little to derail the positive sentiment in China.

Shein / Fast Fashion - Fast Fashion platforms Shein and Temu boost digital advertising in Europe, with the most growth seen in France and UK As US tariffs hit, Shein and Temu see increased app downloads in France and the UK. Shein also boosts advertising in Brazil, where it manufactures goods for Latin America.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.05% at 5,283, DAX +1.08% at 23,335, CAC 40 -0.55% at 7,728, SMI -0.01% at 12,253, FTSE MIB +0.39% at 38,476, IBEX 35 +0.53% at 13,518, PSI +0.49% at 7,000.

SECTORS: Financials 0.64%, Telecoms 0.46%, Utilities 0.41%, Industrials 0.20%, IT 0.00%, Healthcare -0.04%, Consumer Disc -0.08%, Energy -0.09%, Materials -0.24%, Consumer Stpl -1.00%

FTSE 100

Shell (SHEL LN) / BP (BP/ LN) - Shell Plc is evaluating a potential acquisition of BP, and is working with advisers to assess the deal’s feasibility, Bloomberg reports. However, Shell is waiting for further declines in stock and oil prices before deciding whether to proceed with a bid, according to sources. Talks are at an early stage, and Shell may decide to go for share buybacks and bolt-on acquisitions instead. The Bloomberg report suggests that talks have been more serious in recent weeks than it had been before. (Bloomberg) Note: This was reported on Monday, when the FTSE 100 was shut for holiday.

OTHER UK COMPANIES

Frasers (FRAS LN) - XXL Asa on Frasers' offer, says it does not reflect co.’s long term earnings potential and rejects offer. (Newswires)

BROKER MOVES

Just (JUST LN) initiated with Outperform at BNP Paribas

DAX

Continental (CON GY) - Q1 (EUR): Sales 9.7bln (exp. 9.63bln, prev. 9.8bln Y/Y), Adj. Margin 6% (exp. 5.63%). Outlook for 2025 is given separately for automotive due to spin-off. Tyres Division: Sales 13.5-14.5bln. Conti-tech sales 6.3-6.8bln. Outlook does not incl. any impact from potential trade restrictions in the future. (Newswires)

Fresenius Medical Care (FME GY) - Q1 (EUR): Revenue 4.88bln (exp. 4.62bln). Stable US same market treatment development despite impact from severe flu season. Affirms guidance. Narrows FY25 Op. Margin 11% (prev. guided 10-14%). (Newswires)

Zalando (ZAL GY) - Q1 (EUR): Revenue 2.42bln (prev. 2.24bln Y/Y), Adj. EBIT 46.7mn (exp. 47.5mln). Affirms guidance. (Newswires) Shares +4.9% in pre-market trade

OTHER GERMAN COMPANIES

Covestro (1COV GY) - Q1 (EUR): Revenue 3.48bln (exp. 3.57bln, prev. 3.51bln Y/Y), EBITDA 137mln (exp. 159mln, prev. 272mln Y/Y). Guides Q2 EBITDA 200-300mln. Narrows FY25 EBITDA 1-1.4bln (prev. guided 1-1.6bln). (Newswires)

Evotec (EVT GY) - Q1 (EUR): Revenue 200mln (exp. 209mln, prev. 208.7mln Y/Y), Adj. EBITDA 3.1mln (prev. 7.8mln Y/Y). Guides FY25 Revenue 840-880mln. (Newswires) Shares -2.4% in pre-market trade

Hugo Boss (BOSS GY) - Q1 (EUR): EBIT 61mln (exp. 47mln), Revenue 999mln (exp. 977mln). Affirms guidance. Notes that macro volatility is to remain elevated, intensified by ongoing tariff uncertainty. Subdued global consumption continues to weigh on industry development. (Newswires) Shares +4.6% in pre-market trade

TeamViewer (TMV GY) - Q1 (EUR): Revenue 190.3mln (exp. 188mln, prev. 177.1mln Y/Y), Adj. EBITDA 81.7mln (exp. 81mln, prev. 68.1mln Y/Y). (Newswires)

BROKER MOVES

Porsche (P911 GY) downgraded to Equal Weight from Overweight at Barclays

CAC

Airbus (AIR FP) - Co. delivered around 55 jets in April due to engine shortages, via Bloomberg. (Bloomberg)

OTHER FRENCH COMPANIES

Elis (ELIS FP) - Q1 (EUR): Revenue 1.13bln. 2025 outlook confirmed; does not foresee direct negative impact of US tariffs. (Newswires)

Rubis (RUB FP) - Q1 (EUR): Revenue 1.69bln. Affirms 2025 guidance. (Newswires)

BROKER MOVES

LVMH (MC FP) maintained with Equal Weight at Barclays; PT maintained at EUR 550

PAN EUROPE

Italian Banks - Italy unwilling to ease Banco BPM (BAMI IM) conditions in risk to UniCredit (UCG IM), according to Bloomberg; UniCredit is likely to withdraw its Banco BPM bid if the Government doesn't change its mind. (Bloomberg)

Raiffeisen Bank (RBI AV) - Q1 (EUR): Net Income 318mln (prev. 664mln Y/Y), NII 1.05bln (prev. 1.46bln Y/Y). 2025 Outlook unchanged. (Newswires)

Pharma - US President Trump said he will announce pharmaceutical tariffs over the next two weeks, while he signed an order to reduce regulatory barriers to domestic pharmaceutical manufacturing and will have an announcement next week related to the cost of medicines. (Newswires)

PostNL (PNL NA) - Q1 (EUR): Revenue 782mln (prev. 783mln Y/Y). Outlook unchanged for 2025. (Newswires)

Philips (PHIA NA) - Q1 (EUR): Adj. EBITA 354mln (prev. 317.6mln Y/Y), Revenue 4.10bln (exp. 4.58bln, prev. 4.10bln Y/Y). Expects 2025 performance will be skewed toward the latter part of the year, with Q2 showing modest improvement from Q1. Expects adj. EBITA margin to be in a 10.8-11.3% range (prev. guide 11.8-12.3%), incl. an estimated EUR 250-300mln tariff impact. (Newswires)

BROKER MOVES

SMI

Geberit (GEBN SW) - Q1 (CHF): EPS 5.69, -0.7% Y/Y, EBITDA 277mln, +5.3% Y/Y. 2025 Outlook unchanged. (Newswires)

Roche (ROG SW) - Roche introduces innovative Elecsys PRO-C3 test to improve precision in evaluating liver fibrosis severity. (Roche)

UBS Group (UBSG SW) - Credit Suisse will pay USD 511mln and plead guilty to aiding wealthy Americans in concealing over USD 4bln from the IRS, breaching a 2014 DoJ plea deal, FT reports. UBS, which acquired Credit Suisse in 2023, discovered and disclosed undeclared accounts in Singapore. The resolution includes continued cooperation with ongoing DoJ probes. (FT)

OTHER SWISS COMPANIES

SoftwareOne (SWON SW) - Announces last day in final offer period under recommended voluntary share and cash offer for Crayon. (Newswires)

BROKER MOVES

SCANDINAVIA

Coloplast (COLOB DC) - Q2 (DKK): Revenue 6.92bln (exp. 7.02bln). Sees 2024/25 Organic Growth around 7% (prev. guided 8-9%). (Newswires)

Skanska (SKAB SS) - Awarded USD 164mln contract in US. (Newswires)

Telenor (TEL NO) - Q1 (NOK): Adj. EBITDA 8.6bln (exp. 8.7bln). Affirms guidance. (Newswires)

Vestas (VWS DC) - Q1 (EUR): Revenue 3.5bln (exp. 3.01bln), Net Income 5mln (exp. -42mln). FY guidance maintained. Still sees FY Revenue 18-20bln (exp. 19.07bln). (Newswires)

BROKER MOVES

US

Alphabet (GOOG) - The DoJ is seeking a forced breakup of Google’s advertising business, urging a court to mandate the immediate sale of AdX and a phased divestment of its publisher ad server, after a judge found Google had illegally monopolised digital ad markets, Bloomberg reports.

Diamondback Energy (FANG) - Q1 adj. EPS 4.54 (exp. USD 4.20), Q1 revenue USD 4.04bln (exp. 3.75bln). Reported a Q1 average oil production rate of 475.9 MBOE/d. Exec suggested that US shale production has likely peaked, with output expected to decline following a drop in crude prices. The company lowered its full-year production forecast and anticipates a nearly 10% reduction in onshore oil rigs by the end of Q2, with further declines expected in the following months; sees FY25 net production between 857-900 MBOE/d (prev. saw 883-909). FY25 capex seen between USD 3.4-3.8bln.

Ford (F) - Shares declined by over 2% in extended trading, despite a profit beat, as it warned on tariff impacts. Ford reported Q1 adj. EPS of 0.14 (exp. 0.02), Q1 revenue of USD 40.66bln (exp. 36.20bln). The automaker is suspending its 2025 guidance due to uncertainty over US tariffs, which are expected to cost the company USD 1.5bln in adj. EBIT. Ford also warned of USD 2.5bln in total tariff-related costs. CFO, however, said it is on track to deliver USD 1bln in cost improvements this year, ex-tariffs.

Nike (NKE) - Nike announced leadership changes as part of its "Win Now" plan. Heidi O'Neill, President of Consumer, Product, and Brand, will retire after 26 years, with the leadership responsibilities divided into three areas. Appoints Tom Clarke as Chief Growth Initiatives Officer, Amy Montagne as President of Nike, Phil McCartney as EVP, Chief Innovation, Design & Product Officer, and Nicole Graham as EVP, Chief Marketing Officer overseeing all brand storytelling.

Palantir (PLTR) - Despite Palantir's strong Q1 earnings and upbeat guidance, its stock dropped over 9% in after-hours trading, with reports citing market concerns over potential slower growth ahead. Palantir's Q1 results met expectations, with a 39% revenue increase, and it raised its FY revenue guidance; Q1 adj. EPS 0.13 (exp. 0.13), Q1 revenue USD 884mln (exp. 861.00mln). Commercial revenues grew 71%, and US sales surged 55%. Sees Q2 revenue between USD 934-938mln (exp. 898.5mln); sees FY25 revenue between USD 3.89-3.90bln (exp. 3.75bln).

TSMC (TSM) - TSMC said it will not revise its financial outlook despite the sharp rise in the TWD currency, which has created concern for Taiwan’s export-driven semiconductor sector, DigiTimes reports. The company maintains its forecast as currency volatility pressures local chipmakers amid broader tariff and FX-related uncertainty.

06 May 2025 - 06:53- Research Sheet- Source: Newsquawk