A round-up of notable broker activity this morning from Europe's top-ranked* analysts
** J.P. Morgan upgrades Germany's Siemens Energy ENR1n.DE to "overweight" from "neutral", calling it a "powerful FCF machine" with sustainable cash flow into the 2040s driven by long-term service contracts and accelerating global electricity demand
** UBS downgrades spirits maker Diageo DGE.L to "neutral" from "buy", seeing downside risks from a prolonged downturn in the U.S. where the tequila category is declining and the company is losing share
** Goldman Sachs downgrades UK lender Natwest Group NWG.L to "neutral" from "buy", seeing shares as fairly valued now that consensus estimates for 2025-2027 are "largely appropriate", despite its sustained high profitability levels
** GS also downgrades Sweden's Swedbank SWEDa.ST to "sell" from "neutral", pointing to an increased risk profile from the Entercard acquisition and continued market share losses in its home market
** GS upgrades French real estate firm Gecina GFCP.PA to "buy" from "neutral" citing its resilient operational trends, stable occupancy and attractive 7.2% dividend yield for 2026 amid Paris market polarisation
INITIATIONS AND REINSTATEMENTS
** Deutsche Bank resumes French spirits maker Pernod Ricard PERP.PA with a "hold" rating, seeing a "challenging environment" for fiscal 2026 amid weakness in the key U.S. and China markets and slower growth in India
** ING initiates Gecina GFCP.PA with "buy", highlighting its prime Paris office portfolio which trades at an appealing discount to its 2025 net tangible assets
** JPM reinitiates French IT group Capgemini CAPP.PA at "neutral", seeing tempting fundamental growth trends for the sector and noting the "AI disruption narrative engulfed the group" in 2025
** Kepler Chevreux initiates UK asset managers, rating Man Group EMG.L as "buy" for its "bold diversification strategy", while starting Aberdeen Group ABDN.L and Schroders SDR.L with "hold"
** JPM reinstates Swedish engineering firm Alfa Laval ALFA.ST at "neutral" from "underweight", saying headwinds in its Ocean segment are priced in and there is "little to differentiate" it versus peers, with 2026 earnings growth looking uninspiring
** JPM also reinstates Swedish bearings maker SKF SKFb.ST at "neutral", opting to remain on the sidelines until it sees a better entry point or clear signs of an inflection in industrial volumes
(*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.)
(Reporting by Rafal Nowak and Leo Marchandon)
((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))
