** 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))