TheChek News Flow

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Following H1 sales trading statement we downgrade our FY16 EBIT by 19% to reflect

the: 1) excess costs persist in Seating especially on the seat shell activity; 2) cost

overruns related to the ramp up of several programs. We also downgrade our FY17e

EBIT by 13% to reflect Zodiac targets to get back to operational performance in 18

months. Uncertainty regarding the timeline of a potential turnaround remains high. Our

mid-term sales numbers remain unchanged (circa 3%) and reflect small market share

losses and a tougher pricing environment going forward. We believe capacity restraints

and the oligopolistic structure of the industry protect Zodiac from steeper market share

losses.

According to recent press, Zodiac could be a possible acquisition target for Safran (Buy,

PT €67). We believe it is likely that Zodiac's share price could be driven by newsflow

around a potential takeover. We believe the probability of a tak-over has recently

increased, but remains dependent on the willingness of Zodiac's main shareholders –

the families - to consider a potential deal. We discuss in more details the context of a

potential deal in our accompanying note on Safran and we published an interactive

model to better assess the financial implications of a potential takeover.

The risk reward remains balanced, with our downside case (10% margin, 0% revenue

growth) yielding a fair value of €12, while our upside case (14.5% margin, 5% growth)

yielding a fair value of €26.

Our €17.5 (prior €18) price target is based on 9% WACC, 5 year profit growth of 18%

CAGR from FY15/16E and cash conversion of 82%, which implies a fair value multiple

of 18.8x FY15/16E EV/EBITA.

ADIDAS 0% Warning from BELLE INT., Q4 LFL -16.5% v -10.4% in Q3

AIRBUS -1% Expect weakness on EURUSD move overnight.

ASSA AB. +1% CEO interview in D.I. positive on aftermarket.

DANONE +1% Read from CHINA MENGNIU (+7.9%) in HK.

DT BANK +1% Achleitner supported by Sheikh Hamad

GFS +1% S&P maintain BBB- rating but downgrade outlook to negative.

NOSTRUM -2% Reserves 100mmbbls lower than expected and cuts FY16 production

PREM.F. +10% MCCORMICK revise proposal to 65p/shares, NISSIN purchase looks ok

SWED/SHB 0% Fin. minister wants to abolish interest tax deductions on subord

UNICREDIT -2% In talks with Rome on €2bln capital raise according to FT

Numis:
* ARM / LAIRD +1%; Samsung Q1 to beat expectations according to Korea Economic Daily – driven by strong Galaxy S7 sales and weak KRW

* BONMARCHE mkt; New CEO, Helen Connolly is currently Senior Buying Director for George at Asda (formerly Next and Dorothy Perkins) where she’s responsible for all womens clothing, non-clothing and male and female essentials.

* CENTAMIN mkt; We move from HOLD to ADD, note available on request

* CERILLION mkt (+c.11% yday on contract win); Buy - Float success gives it top billing in new UK tech names: Times

* CIRCLE +5%; FY numbers small beat. Upbeat statement. Announces parternership with major Euro rehab provider

* DE LA RUE mkt; Hold - Restructuring work has yet to pay off, but should do in time. Expanding in polymer, identity and security products is key to investment case: Times

* DIURNAL +2%; Maiden results. Small beat. No surprises

* EBIQUITY mkt; Solid performance, marginal beat on our forecasts

* HORNBY +1%; Engaged in 'constructive dialogue' with Barclays Bank re covenants

* LEARNING TECH +2%; +VE finals, been very strong recently

* MANX TELECOM +1%; FY to end Dec '15 revs +0.4% £79.6m, Mobile +9.3% boosted by 4G and Fixed, Broadband, Data +2.2% on high speed Broadband take up. Data +15.3% in line.

* MCKAY SECURITIES mkt; Property Director Steven Mew has resigned from MCKS. Having joined in 2001 he will remain in his role until September 2016, when he will join Great Portland as Portfolio Director on its Executive Committee.

* MONITISE -1%; Sell - No sign yet that it can turn the tide: Times

* MORGAN ADVANCED +2%; Peter Turner is to join as CFO, effective 11th April 2016.

* NEXT +1%; OVERSOLD - We move from HOLD to ADD, note available on request

* NOSTRUM O&G +3%; FY results in line with expectations. Not entering into loan with VTB to avoid unnecessary costs. GTU3 capex plans unch. Very low opex for 2015.

* OILS +1%; Brent $39.31 vs LDN close $38.94, WTI $38.54 vs $38.09, US names strong post Yellen's comments helped by a weaker $. API reported a build of 2.6mmbbls in US inventories. Sector been v weak past few trading sessions.

* PLEXUS -5%; Suspension of dividend due to tough market conditions. Revs for H2 £6.76m vs £13.51m for 2014 and loss after tax of £3.5m.

* PREMIER FOODS +10/15%; MCCORMICK revised bid proposal @ 65p

* SAGA +1%; Enters Quota Share Arrangement with NewRe

* VECTURA mkt; Skyepharma announce positive update on flutiform. Not material

CS:
Assa Abloy +1% CEO Johan Molin reiterating 2016 organic growth forecasts

Autoliv +3% Takata said to put worst-case airbag recall costs at $24bn

Elringklinger +1% Numbers inline with market expectations

Evolva -1% FY results inline but outlook slightly light

Hamburger Haf M/P Net income 18% beat, Raises divi EU0.59 est 0.55

Manz Auto +2% Revs €222m vs cons €206m, guidance better

Miners +1% Copper -0.10%, Brent +1.50%, Iron Ore -0.15%, China +1.53%

Morgan Ad M/P Appoints Peter Turner as new CFO

Neopost -2% FY EPS 3.5% miss, revenues inline, EBITDA 1% beat

Oils +1% US API 2.642m barrels, oil +1.5% vs Europe close

Orpea M/P FY15 sales/organic growth already announced, Confirms FY16

Qiagen M/P Has offered Dk18/shr for Exiqon

SMA Solar +1-2% EBIT 8% beat, net 28% miss, outlook confirmed

Scout24 +2-3% 2015 numbers small ahead, confident on meeting 2016

SEB UNCH Says will take a goodwill impairment of SEK5.3Bln

TLG Immo +1-2% Reports FY FFO at EU64m cons 63m, dividend inline

Volkswagen -1% Lawsuit being pursued by the FTC could run to $15b, FT

Mainfirst:
*AIRBUS-Boeing to cut 4k jobs(2.5%) of w/force,blames Airbus.......+1%

*NOVARTIS-Investigating bribery in Turkey,sells 14 RX Brands.......+0.5%

*SEB-Takes SK5.3b impairment,lowering CET1 ratio marginally........U/C

*ASSA ABLOY-Organic Growth to exceed 5% once mkts normalize-DI.....+1%

*PORSCHE-Recalls 6,101 vehicles in Japan to fix brake pedals.......-0.5%

*QIAGEN-To submit DK18 a share for Exiqon,confirms FY guidance.....+0.5%

*ORPEA-FY Sales 2.39b(2.394),Div 90c,NI 153m(154.85),o/l inline....+1%

*HELVETIA-Aims 2 expand bizz vol Oragically & via Acq's - F&W......+0.5%

*NEOPOST-FY Sales 1.19b(1.198),EPS 3.57,OP Margin inline...........+1%

*ALSTOM-Sees Org Rev Grth of 5% by 2020,Ebit Margin 7% in 2020.....+1%

*SMA SOLAR-FY Sales 999.6m(973),Ebit 34.3m(31.78),confirms o/lk....+2%

*ELRINGKLINGER-Net 91.6m(85.5),Div 55c(50),Mid Term o/l inline.....+0.5%

*ALSTRIA OFFICE-FY Rev 115.3m,FFO 60m(inline),2016 Rev 200m(186)...+0.5%

*SCOUT24-FY Rev 393.6m(389),Ebitda 189.6m(188),outlook ok..........+0.5%

*GRAMMER-Rev 1.43b,Net 23.8m(23.7),Div 75c(66),outlook +ve.........+0.5%

*HAMBURGER HAFEN-NI 66.7m(58.2),Rev o/l unch,Ebit 115-145m(144.5)..-0.5%

*MANZ-FY Ebit 222m(205),Ebit -58.2m(-58.17),outlook +ve............+1%

*TLG IMMOB-FY FFO 64m(66),Sees 2016 FFO 72-74m(70.7),Buys Leipzig..+0.5%

ShoreCap:
PREMIER FOODS - McCormick revised proposal of 65p/share cash...............+10%

XL MEDIA - Fy revs +76%.Ptp +84% to $28.4m.Confident of further growth......+5%

SKYEPHARMA - Breath actuated version of Flutiform accepted for Euro review..+1%

SAGA - enters quota share agreement with NewRe,covers 75% risk in policies..+1%

PERSONAL GRP - revs +27% £59.6m,PBT +14%,divi +7%,confident outlook for '16 +1%

JAMES LATHAM - sees FY revs inline but PBT higher than expected.............+3%

HORNBY - lenders waive March convenant tests,grp trading remains inline.....+2%

MANX TELECOM - revs robust,u'lying PBT +27.9%,maintains divi,good outlook..UNCH

CIRCLE HLDGS - grp revs +15% £127.8m,EBITDA losses more then halve..........+2%