Country Sector

15 May 2014

Europe Today Amid booming M&A activity in , the government has numbers in the Czech republic. In consumer, our top Buy, issued an unexpected decree forcing foreign investors Richemont, reported good numbers too: top line grew by looking to acquire assets in the energy, transport, water, 10% at constant currency and as much as 8% in April health and telcom sectors to obtain government approval. excluding Japan (a weak month, after the VAT increase). The This might change the Alstom case. Elsewhere, in a context operating margin is strong in the core watches and jewellery where equity volumes have dried up and volatility is very divisions. ASCO publishes abstracts of studies to be low, corporate earnings continue to dominate the news flow. presented. Fabian Wenner takes a closer look at Roche, Today, KBC (Selected List) published a solid Q1, beating which we added to our Selected List last week. Fabian expectations by about 8%. Benoit Petrarque highlights the believes the response rate on the Phase I PDL1 compound is healthy improvement in net interest margin driven by the encouraging at 50%. Also included is feedback from a ongoing repricing of deposits as well as the reassuring roadshow with Rexel’s management in London.

Today's top research news

Ausy (Buy) Difficult start to the year, cutting TP x x

Ekinops (Hold) Initiating coverage: Smart positioning but risky play x x

Gategroup (Buy) Q1 results: first take x

KBC (Buy) Strong Q1, higher AUM X X

Korian Medica (Buy) Q1 sales in line, FY targets confirmed x x

Prisa (Buy) Q1 in line - cooling down expectations? x x

Rexel (Reduce) Limited downside, but lack of momentum x x

Richemont (Buy) Dividend, Rupert, outlook offset average result X X

Salzgitter (Buy) Q1 improvement from operations X X

Saras (Reduce) Poor Q1, weak start to Q2: estimates and TP cut x x

Rating and target price changes Roadshow pipeline Company Rating Target Price Brembo New Buy EUR33 16/05 GfK - New York USA 15/05/2014 Old Buy EUR30 16/05 BAM - London NETHERLAND Saras New Reduce EUR1 16/05 MARR - Amsterdam 15/05/2014 Old Reduce EUR1.05 16/05 BAM - London - CEO NETHERLANDS Brembo New Buy EUR33 16/05 Esprinet - New York USAS 15/05/2014 Old Buy EUR30 19/05 Lenzing - Frankfurt AUSTRIA Saras New Reduce EUR1 19/05 Investor - Zurich SWITZERLAND 15/05/2014 Old Reduce EUR1.05 19/05 Eurofins - London UK Ausy New Buy EUR33 19/05 Elisa - Chicago/Kansas USA 14/05/2014 Old Buy EUR33.5 19/05 DICCity/Montreal Asset - London GERMANY

Click here for full list of changes xx Ratings info Click here to attend roadshow Booking online

Country Sector Frontp

Today’s research by country

Austria

Conwert (Hold) Lenzing (Buy) x x X X Weakish Q1 figures pre-announced Q1 results ahead of expectations

Belgium

KBC (Buy) X X Strong Q1, higher AUM

Denmark

FLSmidth (Buy) X X Is order improvement around the corner?

France

Aéroports de (Buy) Ekinops (Hold) x x x x Strong traffic performance Initiating coverage: Smart positioning but risky play

Korian Medica (Buy) Ausy (Buy) x x x x Q1 sales in line, FY targets confirmed Difficult start to the year, cutting TP

Rexel (Reduce) Vivendi (Buy) x x x x Limited downside, but lack of momentum Q1 earnings: first read

Germany

Allianz (Buy) Deutsche Post (Hold) x x x x P&C technical margin still improving Q1 results slightly disappointing on EBIT, FCF

Deutsche Wohnen (Hold) GfK (Buy) X X x x Fine-tuning of estimates after conference call Q1 first take: earnings in line, CC on track

HHLA (Hold) LEG Immobilien (Hold) x x x x Low visibility Solid Q1 figures

Aurubis (Hold) Salzgitter (Buy) x x X X Q2 conference call feedback Q1 improvement from operations

Country Sector Frontp

Italy

Astaldi (B