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Top of the Street: European utilities, SAP, Tritax, Deutz

By Reuters News

A round-up of notable broker activity this morning from Europe's top-ranked* analysts:

** J.P. Morgan raises German software company SAP SAPG.DE to "overweight" from "neutral", saying further workforce transformation and AI-driven efficiencies could support margins

** Morgan Stanley expects European utilities to continue outperforming the market in 2027 and shifts its preference to large caps:

  • It cuts power provider E.ON EONGn.DE to "equal-weight" from "overweight", citing valuation

  • It raises Spanish utility company Iberdrola IBE.MC to "overweight" from "equal-weight" as it expects EPS upgrades

INITIATIONS AND REINSTATEMENTS

** Morgan Stanley initiates Tritax Big Box BBOXT.L with "overweight", saying the UK logistics landlord's exposure to large warehouses and data centre development offers attractive medium-term returns

** Deutsche Bank initiates German engine maker and defence vehicle supplier Deutz DEZG.DE with "buy", saying the market is undervaluing the group's transformation into a defence business that could generate around half of earnings by 2027

(*Analyst rankings from Thomson Reuters StarMine. The scale is from 1-star to 5-star with 5 being the best. Analysts are ranked on earnings accuracy as well as relative performance of recommendations over trailing 12-month & 24-month periods.)

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