MS still upbeat on European business services for 2026
Morgan Stanley reiterates its "attractive" view on the European business services sector for 2026, saying that recent share price declines offer appealing entry points
The recent share price falls could be in part driven by concerns around AI disruption, MS says, but adds it sees them as "overdone"
MS chooses Experian EXPN.L, Diploma DPLM.L, Verisure VSURE.ST, Rentokil RTO.L, ISS ISS.CO and Bureau Veritas BVI.PA as its top picks for 2026
It cuts chemical distributors IMCD IMCD.AS and Brenntag BNRGn.DE to "equal-weight" and "underweight", respectively, saying the stocks appear cheap, but that it sees no imminent recovery given increased Chinese competition
It upgrades Rentokil to "overweight" from "equal-weight", expecting "significant value to be unlocked in the medium term"
Among distributors, MS upgrades RS Group RS1R.L to "overweight" and cuts DCC DCC.L to "equal-weight"
COMPANY | RATING | OLD RATING | PT | OLD PT |
|---|---|---|---|---|
Rentokil | overweight | equal-weight | 520p | 450p |
RS Group | overweight | equal-weight | 790p | - |
ISS | overweight | equal-weight | DKK 245 | DKK 190 |
DCC | equal-weight | overweight | 5750p | 6150p |
IMCD | equal-weight | overweight | EUR 100 | EUR 139 |
SGS | equal-weight | overweight | CHF 100 | - |
Brenntag | underweight | equal-weight | EUR 50 | EUR 63 |
Ashtead AHT.L | - | - | 6,200p | 6,000 |
Azelis AZE.BR | - | - | EUR 12 | EUR 16 |
Eurofins EUFI.PA | - | - | EUR 64 | EUR 61 |
Ferguson FERG.N | - | - | USD 270 | USD 263 |
TP TEPRF.PA | - | - | EUR 115 | EUR 128 |
SPIE SPIE.PA | - | - | EUR 49.5 | EUR 48.5 |
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