Deutsche Bank said that its top picks regarding Greek stocks are Hellenic Exchanges, Motor Oil and Jumbo. It also has “Buy” ratings on Frigoglass, Coca- Cola Hellenic, OPAP and Public Power Corp.
Near end of earnings downgrade cycle, Deutsche Bank focuses on Greek stocks and concludes it could be nearing the end of the earnings downgrade cycle, at least for non-banks.
“For banks and corporates with leveraged balance sheets, we think the upcoming EU summit will be crucial for earnings cycles”, says DM in its report.
It believes the beneficiaries, in Reuters consensus upgrade terms, to be Frigoglass and PPC. Most of the negative revisions relate to Ellaktor and Fourlis.
“Excluding the banks, we have yet to see upgrades, but hopefully we could be nearing the end of the downgrade cycle. We believe there is volatility in bank-related earnings and would avoid the sector for now. Hopefully the EU summit on 24-25 March will improve visibility on sovereign debt and consequently on the banks as well”, according to Deutsche Bank.
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