Market Pulse - Europe
Liberum maintains 'sell' stance on Royal Mail, dividend growth 'unsustainable'
Liberum analysts issued a damning report on shares of Royal Mail, reiterated their ‘sell’ rating on Thursday, stating that dividend growth was "unsustainable" and that the firm faces "significant" structural challenges with scant visibility on how things can be turned around, even if the sharp falls in profits across the board were “unsurprising” given an October profit warning.
Friday preview: Brexit, US capital flows in focus
The focus at the weekend will continue to be on the withdrawal process, with investors focusing on the risk of further Cabinet resignations even as they keep a tally of how many MPs support, or do not, a no-confidence vote against the Prime Minister.
Deutsche Bank slashes British American Tobacco target price
Analysts at Deutsche Bank slashed their target price on shares of British American Tobacco after reviewing the potential actions that the US Food and Drug Administration might take on menthol cigarettes and litigation risks in Canada.
S&P reaffirms UK sovereign debt rating at AA, but outlook still negative
Standard&Poor's reiterated its rating on the UK's long-term sovereign debt, despite the risk that the withdrawal agreement that had been reached overnight between Brussels and London might not make it through Parliament, forcing both sides to return to the bargaining table.
Credit Suisse upgrades UK equities, says early elections 'unlikely'
Credit Suisse upgraded its view on UK stocks on Wednesday, arguing that investors had 'thrown in the towel', leaving shares undervalued in the process.