BUZZ-MS still upbeat on European business services for 2026

Reuters01-06
BUZZ-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

(Reporting by Javi West Larrañaga)

((javier.west@thomsonreuters.com; +34 918 35 61 12))

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