European earnings roll call sees Nestlé shares rise, while ASML, Akzo Nobel fall
European stocks struggled for direction on Wednesday as investors reacted to results from some of the region’s biggest companies, with shares of Nestlé a top gainer, while ASML Holding, Akzo Nobel and Antofagasta all fell.
Struggling for direction, the Stoxx Europe 600 index SXXP,
Global concerns on rising inflation were in focus, with Germany reporting a 14.2% surge in annual producer prices for September, the highest annual gain since October 1974, said statistics office Destatis.
Among companies, Nestlé NSRGY,
“Nestlé appears well-positioned to weather the current environment of rising input costs,” said a team of Morgan Stanley analysts led by Pinar Ergun, in a note to clients. The company’s valuation of 22 times 2022 earnings, excluding its L’Oréal holding, “looks undemanding to us,” said the analyst.
Another gainer was Deliveroo ROO,
On the downside, shares of ASML Holding ASML,
Akzo Nobel AKZA,
“Despite the well flagged near-term raw [material] headwinds, the underlying demand across the division remains strong and AKZO continues to benefit from the strong coatings demand as many of the end-markets move toward normalization,” said a team of Citi analysts led by Mubasher Chaudhry, in a note to clients.
“Sustainability of volume and measures to combat impacts of raw material headwinds into 2022 should be a key debate point going forwards; however, shareholder returns and significant balance sheet firepower support our positive stance on the name,” said Chaudhry, who has a buy rating on the Akzo Nobel.
The mining sector was among the weakest in Europe, with shares of Antofagasta ANTO,
Stock in Kering KER,