FT - Tiffany to sue LVMH over delayed $16bn takeover

FT - Tiffany to sue LVMH over delayed $16bn takeover

Tiffany is taking legal action against LVMH claiming the French luxury conglomerate has deliberately stalled the process of securing antitrust approvals for its $16bn takeover of the US jeweller and used other delaying tactics to force it to renegotiate the deal.

In the most high-profile example of how deals agreed before the coronavirus pandemic have soured, Tiffany will file a lawsuit with the Delaware Court of Chancery on Wednesday seeking to force LVMH to close the transaction by the November 24 deadline, according to people close to the matter.

Tiffany alleges that LVMH has delayed the EU regulatory process to avoid closing before a mandated deadline, and threatened to walk away from the takeover unless the price tag is reduced, people briefed about the matter said.

Competition watchdogs in China and the US have already cleared what would be the largest-ever takeover in the luxury sector, but LVMH has yet to file for regulatory approval in three required jurisdictions, including the EU, the people said. When the deal was agreed in November 2019, LVMH said it did not expect any trouble obtaining the approval of EU regulators.

In late July the world’s largest luxury group by revenues said on an investor call that antitrust filings remained under way in about half a dozen countries. It said it was “responding expeditiously” to regulators’ questions, despite the Covid-19 crisis slowing down the process.

LVMH told Tiffany on Tuesday that it received a letter from the French government about a week earlier. The letter asked it to delay closing the deal until January 6 next year in an effort to dissuade the Trump administration from imposing tariffs on goods from France, according to the people briefed on the matter.

Tiffany’s lawsuit will claim LVMH breached its transaction agreement by failing to inform the US company immediately after it received that letter, the people said.

Such a request has not been made public by the French government, nor has any other company in the EU’s second-largest economy been openly asked to take similar measures.

The lawsuit marks the latest twist in the struggle between Bernard Arnault, head of LVMH and Europe’s richest man, and Tiffany to renegotiate the deal.

LVMH had long coveted the US jeweller founded by Charles Lewis Tiffany in 1837, and before the coronavirus outbreak agreed to pay $135 per share for what Mr Arnault later referred to as an “American icon”.

However, that was before Covid-19 decimated demand globally for luxury goods: analysts predict a 20 to 35 per cent drop in sales this year and a slow recovery that could take three years.

LVMH’s offer late last year represented a 37 per cent premium to the New York-listed Tiffany’s undisturbed share price at the time, which now looks expensive given luxury’s darker outlook. Tiffany shares closed at $121.81 on Tuesday, and have fallen nearly 9 per cent this year.

Mr Arnault, dubbed “the wolf in cashmere” for his hardball and hostile dealmaking tactics, has not spoken publicly about whether he is seeking to renegotiate the acquisition.

In June, LVMH said it did not plan to buy Tiffany shares in the open market, ruling out one of the only options available to lower the agreed price. This followed reports it had discussed reopening negotiations at a board meeting.

People close to Tiffany have claimed details of that meeting, during which the LVMH board allegedly tried to come up with ways to use the pandemic and protests in the US to reduce the price, were leaked to the press by the European luxury group.

In response to questions from analysts and journalists about whether it was seeking to renegotiate the deal, LVMH said repeatedly in April, June, and July that it would respect the merger agreement it had signed with Tiffany.

In mid-August, when Tiffany extended the deal’s closing date to November 24, LVMH countered that it still had the right to terminate the deal using a so-called material adverse effect clause, which allows buyers to walk away if a target company experiences a sharp drop in revenue and profit.

Tiffany has said its business performance is in line with that of sector peers and it is well positioned to continue growing. It has rejected any attempt to scuttle the deal.

Tiffany declined to comment on the legal action. LVMH did not immediately respond to requests for comment.

>>> US Gapping down

Gapping down

In reaction to earnings/guidance:

  • WORK -16.5%, CASY -5.2%, LULU -5%, COUP -4.6%, NAV -4.6%, SCWX -3.9%, ABM -2.3%, LOVE -1.6%

Other news:

  • ATNX -9.4% (announced a public offering of 10.0 mln common shares)
  • TIF -9.2% (files lawsuit against LVMH (LVMUY) to enforce merger agreement)
  • AZEK -7.7% (launched secondary public offering of 25.0 mln shares of Class A common stock),
  • ARCE -5.6% (priced an underwritten public offering of 2,500,000 Class A common shares to be issued by Arco at a public offering price of $44.80/share)
  • VRM -4% (commenced public offering of 9.0 mln common shares)
  • SCWX -3.9% (to acquire Delve Laboratories)
  • AZN -2.7% (COVID-19 vaccine trial on hold following suspected serious adverse event, per Stat)
  • ALK -2% (provides investor updates; Q3 planning assumptions include capacity to be down ~55%)
  • UAL -1.2% (continues to see a significant impact in demand for air travel)
  • UAA -1.2% (announced $75 mln increase to 2020 restructuring plan)

Analyst comments:

  • ESS -0.5% (downgraded to Sell from Neutral at Goldman)
  • GOGO -0.5% (downgraded to Market Perform from Outperform at Cowen)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

  • QRVO +6.4%, ST +3.6%, GLW +2.1% (expects Q3 sales to grow by a low-teen percentage sequentially vs high-single digit consensus), PHR +1.8%, HQY +1.3%

Other news:

  • ITCI +68.5% (announces topline results from its Phase 3 clinical trial (Study 402) evaluating lumateperone as adjunctive therapy to lithium or valproate in the treatment of major depressive episodes associated with Bipolar I or Bipolar II disorder)
  • SCOR +23.1% (granted new US patent for device co-location identification)
  • NNOX +17.7% (enters distribution agreement with SPI Medical for the deployment and introduction of Nanox's medical imaging services in Mexico)
  • DTIL +11.4% (FDA has granted Fast Track Designation to PBCAR269A for the treatment of relapsed/refractory multiple myeloma)
  • KOS +11.2% (to farm down of a portfolio of exploration assets to Shell (RDS.A) for up to $200 mln)
  • BNTX +6.1% (BioNTech and Pfizer to potentially supply the EU with 200 mln doses of mRNA-based vaccine candidate against SARS-CoV-2)
  • CI +3.6% (expands offerings to customers who access health coverage through the Affordable Care Act marketplace)
  • TECK +2.7% (production guidance)
  • PFE +1.3% (BioNTech and Pfizer to potentially supply the EU with 200 mln doses of mRNA-based vaccine candidate against SARS-CoV-2)

Analyst comments:

  • SPCE +5% (upgraded to Outperform from Neutral at Credit Suisse)
  • SDC +2.6% (upgraded to Peer Perform from Underperform at Wolfe Research)
  • DKNG +2.5% (initiated with an Outperform at Evercore ISI)
  • AZUL +2.2% (upgraded to Buy from Hold at Deutsche Bank)
  • ARMK +2.1% (upgraded to Buy from Neutral at Goldman)
  • VLRS +2% (upgraded to Buy from Hold at Deutsche Bank)
  • INVH +1.6% (upgraded to Buy from Sell at Goldman)
  • THO +1.6% (upgraded to Outperform from Market Perform at BMO Capital Markets)

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • SCOR +23.1%, KOS +12.1%, NNOX +8.8%, QRVO +6%, BNTX +4.9%, CI +3.6%, ST +3.6%, TECK +2.7%, PHR +1.8%, ITCI +1.2%, PFE +1.1%, ARCB +0.8%
  • Gapping down:
    • WORK -17.3%, ATNX -9.4%, TIF -8.9%, AZEK -7.7%, ARCE -5.5%, CASY -5.2%, LULU -5.1%, NAV -4.6%, SCWX -3.9%, SCWX -3.9%, COUP -3.6%, ALBO -2.8%, VRM -2.6%, AZN -2.4%, ABM -2.3%, AJRD -1.4%, ALK -1.1%, ASND -1%, UAL -1%, LOVE -1%, UAA -0.8%, PETQ -0.8%, TXG -0.8%, FOUR -0.8%

WWD : LVMH Says It Won’t Move Ahead With Tiffany Acquisition

LVMH Says It Won’t Move Ahead With Tiffany Acquisition
The Minister for Europe and Foreign Affairs asked LVMH to defer the transaction beyond Jan. 6, 2021, past the deadline of the original agreement.

PARIS — The engagement between Tiffany and LVMH Moët Hennessy Louis Vuitton seems to be off.

The French luxury giant said it likely won’t be able to complete its planned $16.2 billion acquisition of the American jeweler after France’s Minister for Europe and Foreign Affairs asked LVMH to defer the transaction beyond Jan. 6, 2021. The request was made in the wake of a U.S. threat to slap tariffs on a range of French products.

LVMH noted that its original acquisition agreement called for a deadline of Nov. 24 to complete the transaction.

“As it stands, the LVMH Group will therefore not be able to complete the acquisition of Tiffany & Co.,” the French conglomerate said in a brief statement on Wednesday.

It also said LVMH’s board of directors recently met “after a succession of events likely to weaken the transaction to acquire Tiffany & Co.”

The board also took note of Tiffany’s request to extend the deadline for completing the agreement to Dec. 31. Tiffany officials could not immediately be reached for comment.

WWD broke the news on June 1 that the blockbuster deal was looking a lot less certain, citing details of a board meeting specifically to discuss the matter amid a deteriorating situation in the U.S. market, Tiffany’s largest.

Board members of the luxury giant expressed concern at the time about the impact of not only the coronavirus pandemic, which has claimed more than 180,000 lives in America and wreaked widespread economic damage, but also the growing social unrest over racial injustice. There were also question marks about debt covenants, sources told WWD.

The Tiffany deal, secured before the world was upended by COVID-19, was seen as giving LVMH a tighter grip on the lucrative high-end jewelry segment.

Combining the financial firepower of the world’s largest luxury group with the iconic American house — known globally for its robin’s egg-colored packaging and classic engagement ring settings — was seen as creating a more robust competitor to the leading jewelry label Cartier, which belongs to Compagnie Financière Richemont.

Separately, Tiffany is said to be filing a lawsuit with the Delaware Court of Chancery seeking to force LVMH to close the transaction by the Nov. 24 deadline, The Financial Times reported, citing sources.

>>> Europe : Brokers Upgrades & Downgrades - 9th of September 2020 - V(2)

>>> Up
* Axa Raised to Buy at Berenberg; PT 21.80 euros
* DSV Panalpina PT Raised to 1,074 kroner at Morgan Stanley
* Electrolux Raised to Buy at Handelsbanken; PT 220 kronor
* Equinor Raised to Neutral at SpareBank; PT 140 kroner
* Hunting Raised to Buy at BofA (+)
* IMI Raised to Hold at Berenberg; PT 995 pence
* Just Group Raised to Equal-Weight at Morgan Stanley
* Meggitt Raised to Hold at SocGen; PT 306 pence
* Munich Re Raised to Buy at Pareto Securities; PT 275 euros
* Pandora Raised to Buy at Citi; PT 570 kroner
* RAI Way Raised to Buy at Equita; PT 7.30 euros (+)
* TGS Raised to Buy at BofA (+)

>>> Down
* Airbus Cut to Equal-Weight at Morgan Stanley; PT 73 euros
* Carlsberg AS Cut to Sell at Handelsbanken; PT 800 kroner
* Dietswell Cut to Add at AlphaValue
* Electrolux Professional Cut to Hold at Handelsbanken
* Ferrovial Cut to Neutral at JPMorgan; PT 25 euros
* Husqvarna Cut to Hold at Handelsbanken; PT 100 kronor
* Mersen Raised to Buy at Oddo BHF; PT 31 euros (+)
* Naturgy Cut to Reduce at HSBC; PT 15.60 euros
* Sampo Cut to Hold at Berenberg; PT 43.70 euros
* Verbund Cut to Reduce at HSBC; PT 38 euros

>>> Initiation
* Aston Martin Rated New Outperform at Bernstein (+)
* BMW Rated New Outperform at Bernstein; PT 90 euros (+)
* Daimler Rated New Outperform at Bernstein (+)
* Danske Bank Rated New Equal-Weight at Barclays; PT 98 kroner
* DNB Rated New Underweight at Barclays; PT 118 kroner
* Ferrari Rated New Underperform at Bernstein (+)
* Fiat Chrysler Rated New Underperform at Bernstein; PT $8
* Getinge Rated New Buy at BofA; PT 245 kronor (+)
* G5 ENTERTAINMENT INITIATED AT SIDOTI, PT $54
* Handelsbanken Rated New Equal-Weight at Barclays; PT 86 kronor
* National Express Rated New Buy at Berenberg; PT 190 pence
* Nordea Bank Rated New Equal-Weight at Barclays; PT 7.10 kronor
* Peugeot Assumed Underperform at Bernstein (+)
* Porsche SE Reinstated Underperform at Bernstein; PT 60 euros
* Renault Rated New Outperform at Bernstein (+)
* RWS Holdings Rated New Buy at Jefferies; PT 761 pence
* SEB Rated New Underweight at Barclays; PT 72 kronor
* Shanta Gold Rated New Buy at Liberum; PT 23 pence
* Swedbank Rated New Overweight at Barclays; PT 176 kronor
* Trainline Rated New Buy at Berenberg; PT 520 pence
* Traton Rated New Underperform at Bernstein; PT 17 euros
* Volvo Rated New Outperform at Bernstein; PT 200 kronor
* VW Rated New Underperform at Bernstein (+)
* WH Smith Rated New Hold at Berenberg; PT 1,200 pence

>>> Call
* Airbus Faces ‘Down Year’ for Deliveries in 2021: Morgan Stanley
* Axa Upgraded to Buy at Berenberg on Confidence in Strategy
* AstraZeneca Trial Pause to Hurt Stock, Broader Market: Citi (+)
* Berenberg Sees Opportunities to Cherry-Pick U.K. Travel Plays
* Bernstein Quants Say Crowded Asia Stocks Vulnerable to U.S. Drop
* DSV Panalpina’s Market Offers Consolidation Opportunities: MS
* Pandora Gets Upgrade, Street-High PT at Citi on Brand Prospects
* Tod’s 2Q Results Difficult, Consensus Still Too High: Jefferies

FT : Art market report shows the severe impact of Covid-19

Art market report shows the severe impact of Covid-19
Smaller galleries have been hardest hit, while online selling platforms are a growing priority

Art gallery sales fell by an average 36 per cent in the first half of this year, finds the first comprehensive analysis of the impact of Covid-19 on this sector, published by Art Basel and UBS today. 

The new survey of 795 contemporary and modern art specialists was conducted by the industry expert Clare McAndrew, founder of Arts Economics. She reports a median decline in sales value of 43 per cent for the period, a relevant measure in such a fragmented industry. McAndrew does not cover the auction sector in her report but earlier research by ArtTactic found that sales fell 49 per cent for the leading auction houses in the first half of 2020.

The gallery industry as a whole has been hit on several fronts by the lockdowns and other restrictions around the world. “The business model — based fundamentally on discretionary spending and strongly dependent on travel and in-person contact — is uniquely positioned to struggle in the present realities of the Covid-19 pandemic,” says the latest report. 


As has become the norm in the art market in recent years, the greatest pain has been felt by those lower down the food chain. Galleries with a turnover between $250,000 and $500,000 a year, which represent 13 per cent of those surveyed, report the largest share of downsizing (38 per cent) as well as the greatest fall in total sales (47 per cent). 

Alarming for a sector that is mostly made up of such relatively small businesses is that a third of those surveyed by McAndrew were forced to cut their staff. This equated to an average of four job losses out of a staff of eight (permanent and part-time employees) during the period. Only two per cent of galleries report having to close down completely, although, as McAndrew points out, this estimate might be conservative given that “Permanently closed galleries are less likely to have received and responded to the survey.”

Nearly all the galleries (93 per cent) had to shut their doors for an average of 10 weeks during the first half of this year. While most have since reopened, the report notes that their situation could yet worsen as deadlines loom for emergency relief such as furlough schemes and rent reductions.


Art fairs, where sometimes hundreds of selected galleries gather in one place to attract thousands of well-heeled buyers for a few days, accounted for an average 46 per cent of gallery sales last year. For the first half of 2020, as such events have been overwhelmingly cancelled or optimistically postponed, galleries reported only 16 per cent of income from fairs. This percentage is likely to fall further for the full year as some fairs held early in the year — including Frieze LA and the Armory Show in New York — were able to sneak in before the seriousness of the pandemic was recognised. 

To make up for some lost sales, galleries have made decent strides online, which has proved a “lifeline”, McAndrew says. Total sales made online grew from a 10 per cent share of business in 2019 to 37 per cent for the first half of 2020. These were predominantly made from galleries’ own websites, as well as third-party aggregators and the increasingly familiar “OVRs” (Online Viewing Rooms) that have replaced art fairs. 

Adjustment to a more digital world is still shaky in this industry, but most galleries expect their online business to keep growing and be a sustainable income stream into 2021. Of possible concern is that a quarter of McAndrew’s sample made no online sales at all this year.


Investment in IT came at a price. McAndrew finds that this rose from an average 8 per cent of a gallery’s costs in 2019 to 10 per cent in the first half of 2020. But this has been more than made up for in the fall in the average cost of attending art fairs, previously the largest component at 29 per cent, now down to 16 per cent. Other travel costs, such as visiting museum shows or clients overseas, have also fallen, from 11 per cent to 7 per cent. This enabled some galleries to maintain more stable profits during the period. 

Some cheer can also be found in McAndrew’s survey of 360 active collectors, each with more than $1m liquid assets and equally split between the US, UK and Hong Kong. The vast majority (92 per cent) reported that they had bought art in the first six months of 2020 and at high levels. McAndrew reports that 56 per cent of collectors spent more than $100,000 during the period, including 16 per cent who spent more than $1m. 

An average of 59 per cent of collectors say the pandemic has in fact “increased their interest in collecting”, with 31 per cent adding “significantly so”. This instinct is strongest among the millennial bracket (defined here as aged between 23 and 38), where these levels are at 70 per cent and 42 per cent respectively. Unlike in previous recessions, galleries have “noted an acute awareness and strong drive by some collectors to support the arts, and help ensure the survival of galleries, artists, and museums during the crisis”, McAndrew writes.

The millennial collectors, who represent nearly half of the active collectors surveyed, were also found to be more comfortable buying at higher prices online in these sectors: 16 per cent of millennials were found “commonly” to buy work at over $1m online while none of the boomer generation (aged 55-73) bought online at this level. Nearly a third of collectors report buying a work via Instagram in the first six months of 2020.


Overall though, 70 per cent of collectors surveyed said they still preferred seeing art in person and 15 per cent said that they did not use an OVR at all during the period.


Gallery priorities for the remainder of the year are to boost online sales, cut costs and focus on existing collectors. Of potential concern for the market’s future health is the report’s finding that only 14 per cent of collectors are looking beyond the established, blue-chip galleries they already know, while the surviving businesses are also erring on the conservative side. “Especially in times of crisis, organisations may abandon drastic efforts to distinguish themselves and instead seek safety by a kind of follow-the-leader pattern of behaviour,” McAndrew writes. But with most collectors not planning to travel to art events until the second half of 2021 and most galleries “bracing for further declines”, a bit of homogenisation might be the least of the industry’s problems. 

FT : Art market report shows the severe impact of Covid-19

Art market report shows the severe impact of Covid-19
Smaller galleries have been hardest hit, while online selling platforms are a growing priority

Art gallery sales fell by an average 36 per cent in the first half of this year, finds the first comprehensive analysis of the impact of Covid-19 on this sector, published by Art Basel and UBS today. 

The new survey of 795 contemporary and modern art specialists was conducted by the industry expert Clare McAndrew, founder of Arts Economics. She reports a median decline in sales value of 43 per cent for the period, a relevant measure in such a fragmented industry. McAndrew does not cover the auction sector in her report but earlier research by ArtTactic found that sales fell 49 per cent for the leading auction houses in the first half of 2020.

The gallery industry as a whole has been hit on several fronts by the lockdowns and other restrictions around the world. “The business model — based fundamentally on discretionary spending and strongly dependent on travel and in-person contact — is uniquely positioned to struggle in the present realities of the Covid-19 pandemic,” says the latest report. 


As has become the norm in the art market in recent years, the greatest pain has been felt by those lower down the food chain. Galleries with a turnover between $250,000 and $500,000 a year, which represent 13 per cent of those surveyed, report the largest share of downsizing (38 per cent) as well as the greatest fall in total sales (47 per cent). 

Alarming for a sector that is mostly made up of such relatively small businesses is that a third of those surveyed by McAndrew were forced to cut their staff. This equated to an average of four job losses out of a staff of eight (permanent and part-time employees) during the period. Only two per cent of galleries report having to close down completely, although, as McAndrew points out, this estimate might be conservative given that “Permanently closed galleries are less likely to have received and responded to the survey.”

Nearly all the galleries (93 per cent) had to shut their doors for an average of 10 weeks during the first half of this year. While most have since reopened, the report notes that their situation could yet worsen as deadlines loom for emergency relief such as furlough schemes and rent reductions.


Art fairs, where sometimes hundreds of selected galleries gather in one place to attract thousands of well-heeled buyers for a few days, accounted for an average 46 per cent of gallery sales last year. For the first half of 2020, as such events have been overwhelmingly cancelled or optimistically postponed, galleries reported only 16 per cent of income from fairs. This percentage is likely to fall further for the full year as some fairs held early in the year — including Frieze LA and the Armory Show in New York — were able to sneak in before the seriousness of the pandemic was recognised. 

To make up for some lost sales, galleries have made decent strides online, which has proved a “lifeline”, McAndrew says. Total sales made online grew from a 10 per cent share of business in 2019 to 37 per cent for the first half of 2020. These were predominantly made from galleries’ own websites, as well as third-party aggregators and the increasingly familiar “OVRs” (Online Viewing Rooms) that have replaced art fairs. 

Adjustment to a more digital world is still shaky in this industry, but most galleries expect their online business to keep growing and be a sustainable income stream into 2021. Of possible concern is that a quarter of McAndrew’s sample made no online sales at all this year.


Investment in IT came at a price. McAndrew finds that this rose from an average 8 per cent of a gallery’s costs in 2019 to 10 per cent in the first half of 2020. But this has been more than made up for in the fall in the average cost of attending art fairs, previously the largest component at 29 per cent, now down to 16 per cent. Other travel costs, such as visiting museum shows or clients overseas, have also fallen, from 11 per cent to 7 per cent. This enabled some galleries to maintain more stable profits during the period. 

Some cheer can also be found in McAndrew’s survey of 360 active collectors, each with more than $1m liquid assets and equally split between the US, UK and Hong Kong. The vast majority (92 per cent) reported that they had bought art in the first six months of 2020 and at high levels. McAndrew reports that 56 per cent of collectors spent more than $100,000 during the period, including 16 per cent who spent more than $1m. 

An average of 59 per cent of collectors say the pandemic has in fact “increased their interest in collecting”, with 31 per cent adding “significantly so”. This instinct is strongest among the millennial bracket (defined here as aged between 23 and 38), where these levels are at 70 per cent and 42 per cent respectively. Unlike in previous recessions, galleries have “noted an acute awareness and strong drive by some collectors to support the arts, and help ensure the survival of galleries, artists, and museums during the crisis”, McAndrew writes.

The millennial collectors, who represent nearly half of the active collectors surveyed, were also found to be more comfortable buying at higher prices online in these sectors: 16 per cent of millennials were found “commonly” to buy work at over $1m online while none of the boomer generation (aged 55-73) bought online at this level. Nearly a third of collectors report buying a work via Instagram in the first six months of 2020.


Overall though, 70 per cent of collectors surveyed said they still preferred seeing art in person and 15 per cent said that they did not use an OVR at all during the period.


Gallery priorities for the remainder of the year are to boost online sales, cut costs and focus on existing collectors. Of potential concern for the market’s future health is the report’s finding that only 14 per cent of collectors are looking beyond the established, blue-chip galleries they already know, while the surviving businesses are also erring on the conservative side. “Especially in times of crisis, organisations may abandon drastic efforts to distinguish themselves and instead seek safety by a kind of follow-the-leader pattern of behaviour,” McAndrew writes. But with most collectors not planning to travel to art events until the second half of 2021 and most galleries “bracing for further declines”, a bit of homogenisation might be the least of the industry’s problems. 

>>> Europe : Brokers Upgrades & Downgrades - 9th of September 20

>>> Up
* Axa Raised to Buy at Berenberg; PT 21.80 euros
* DSV Panalpina PT Raised to 1,074 kroner at Morgan Stanley
* Electrolux Raised to Buy at Handelsbanken; PT 220 kronor
* Equinor Raised to Neutral at SpareBank; PT 140 kroner
* IMI Raised to Hold at Berenberg; PT 995 pence
* Just Group Raised to Equal-Weight at Morgan Stanley
* Meggitt Raised to Hold at SocGen; PT 306 pence
* Munich Re Raised to Buy at Pareto Securities; PT 275 euros
* Pandora Raised to Buy at Citi; PT 570 kroner

>>> Down
* Airbus Cut to Equal-Weight at Morgan Stanley; PT 73 euros
* Carlsberg AS Cut to Sell at Handelsbanken; PT 800 kroner
* Dietswell Cut to Add at AlphaValue
* Electrolux Professional Cut to Hold at Handelsbanken
* Ferrovial Cut to Neutral at JPMorgan; PT 25 euros
* Husqvarna Cut to Hold at Handelsbanken; PT 100 kronor
* Naturgy Cut to Reduce at HSBC; PT 15.60 euros
* Sampo Cut to Hold at Berenberg; PT 43.70 euros
* Verbund Cut to Reduce at HSBC; PT 38 euros

>>> Initiation
* Danske Bank Rated New Equal-Weight at Barclays; PT 98 kroner
* DNB Rated New Underweight at Barclays; PT 118 kroner
* Fiat Chrysler Rated New Underperform at Bernstein; PT $8
* G5 ENTERTAINMENT INITIATED AT SIDOTI, PT $54
* Handelsbanken Rated New Equal-Weight at Barclays; PT 86 kronor
* National Express Rated New Buy at Berenberg; PT 190 pence
* Nordea Bank Rated New Equal-Weight at Barclays; PT 7.10 kronor
* Porsche SE Reinstated Underperform at Bernstein; PT 60 euros
* RWS Holdings Rated New Buy at Jefferies; PT 761 pence
* SEB Rated New Underweight at Barclays; PT 72 kronor
* Shanta Gold Rated New Buy at Liberum; PT 23 pence
* Swedbank Rated New Overweight at Barclays; PT 176 kronor
* Trainline Rated New Buy at Berenberg; PT 520 pence
* Traton Rated New Underperform at Bernstein; PT 17 euros
* Volvo Rated New Outperform at Bernstein; PT 200 kronor
* WH Smith Rated New Hold at Berenberg; PT 1,200 pence

>>> Call
* Airbus Faces ‘Down Year’ for Deliveries in 2021: Morgan Stanley
* Axa Upgraded to Buy at Berenberg on Confidence in Strategy
* Berenberg Sees Opportunities to Cherry-Pick U.K. Travel Plays
* Bernstein Quants Say Crowded Asia Stocks Vulnerable to U.S. Drop
* DSV Panalpina’s Market Offers Consolidation Opportunities: MS
* Pandora Gets Upgrade, Street-High PT at Citi on Brand Prospects
* Tod’s 2Q Results Difficult, Consensus Still Too High: Jefferies