- DE30 marginally higher during Thursday's session
- Nestle releases worse earnings results
- Deutsche Bank optimistic about GEA Group company
General market situation
Thursday's session on European markets brings a deterioration in investor sentiment. European stocks fell as a string of dismal results from companies, including food giant Nestle (NESN,CH), worsened already weak sentiment, fueled by concerns over the war in the Middle East and the continued path of interest rates in the US and Europe.
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At the moment, most companies listed in Europe during Thursday's trading session are trading down. Source: xStation 5
Futures based on the German DE30 are trading nearly 0.26% higher intraday and are climbing above the zone of weekly lows. Source: xStation 5
Nestle company results.
The full-year 2023 forecast has been confirmed: the company expects organic sales growth between 7% and 8% and an underlying trading operating profit margin between 17.0% and 17.5%. Underlying earnings per share in constant currency will increase between 6% and 10%. Source: Bloomberg Finance L.P.
News:
Suedzucker (SZU.DE) shares are losing nearly 5% during today's session due to a downgraded recommendation on the company's stock issued by Barclays. The bank downgraded the company's recommendation to an "underweight" rating (previously it was an "equal-weight" rating), and the target price to €12 versus the previous €15.
Barclays sees "end-growth pressure" for food suppliers in the EU, as the growing negative narrative about the health risks of ultra-processed foods could hurt consumer demand in the long term. In this sphere, the Bank adds, the key is GLP-1 analogs, which have recently been gaining popularity and are being used as anti-obesity formulations in addition to their usefulness in diabetes.
Source: xStation 5
Deutsche Bank raised its recommendation on shares of GEA Group (G1A.DE) to a "buy" rating from its previous "hold" rating. The bank cites the German food processing equipment manufacturer's "consistently strong" performance despite high indications of input price inflation. The company's shares are currently gaining nearly 0.76%.
GEA generates 80% of its revenue from food and beverage customers, as well as pharmaceuticals, which will limit business volatility despite growing concerns about a global recession, Deutsche said.
Source: xStation 5
Biotechnology company Merck KGaA (MRK.DE) reaffirmed medium-term growth targets for its three business sectors and said it expects further growth beyond 2025. Before the day's capital markets, investors had expected the forecasts to be lowered, so the maintained outlook can be seen as positive, Morgan Stanley analysts added.
Merck KGaA (MRK.DE) shares are gaining in today's session due to confirmed earnings forecasts. Source: Bloomberg Finance L.P.
The largest percentage changes in individual companies in the DAX index. Source: Bloomberg Finance L.P.
Information from individual companies in the DAX index. Source: Bloomberg Finance L.P.
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