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European stock markets trade lower
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DE30 tests key support below 14,180 pt
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Earnings from HelloFresh, Covestro and Symrise
Some risk-off moods can be spotted on the European stock markets today. While the majority of European blue chips indices started today's session little changed, weakness arrived later on. German DAX (DE30) and French CAC (FRA40) trade 1.4% lower while Dutch AEX (NED25) drops 1%. UK FTSE 100 (UK100) trades flat on the day. There is no clear reason behind the risk-off move. There were some reports about Belarusian troops entering Ukraine but downward movement began 1-2 hours before those news surfaced.
Morning jump on DE30 faded and index pulled back to a key area below 14,180 pts handle. This zone is marked with the lower limit of the Overbalance structure (purple box) and provided support for the price in recent days. However, if this support is broken, a deeper downward move may follow as according to Overbalance methodology it would hint at trend reversal. Source: xStation5
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Create account Try a demo Download mobile app Download mobile appHelloFresh (HFG.DE) reported a drop in 2021 net profit to €256.1 million from €369 million in 2020. However, sales growth was positive and reached almost 60%. Sales grew to €5.99 billion. HelloFresh said that it has delivered 964.3 million meal kits in 2021, up from 601.2 million in 2020. Company expects 2022 sales growth to reach 20-26% while EBITDA is seen at €500-580 million.
Covestro (1COV.DE) reported an over-100% jump in 2021 EBITDA, to €3.1 billion. Result was in-line with market expectations and the company's own guidance. Sales increased 48.6% in 2021, to €15.9 billion (exp. €15.3 billion). Company proposed 2021 dividend at €3.40 per share.
Bayer (BAYN.DE) expects adjusted EBITDA to increase 7% in 2022, to €12 billion.
Symrise (SY1.DE) said it expects a slowdown in sales growth this year as raw material prices remain high and the global economy is expected to slow down. Company expects sales growth to reach 5-7% in 2020, down from 8.7% reported in 2021. Symrise said it also expects its EBITDA margin to stand around 21% in full-2022.
Analysts' actions
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Symrise (SY1.DE) upgraded to "equal-weight" at Morgan Stanley. Price target set at €108.00
Bayer (BAYN.DE) is trading higher today. Stock jumped above the €52.50 resistance zone at the beginning of today's session but has pulled back to the area later on. A lot will depend on whether the stock heads now. If it fails to break above the €52.50 again and pulls back, the right shoulder of head and shoulders pattern could be painted on the chart. Source: xStation5
