Morning Notes: Europe

by: Dealing Floor

DEUTSCHE POST: GOLDMAN SACHS UPGRADES TO OUTPERFORM FROM IN-LINE
MAN: CREDIT SUISSE UPGRADES TO NEUTRAL FROM UNDERPERFORM
MUNICH RE: CREDIT SUISSE RAISES TARGET TO EUR 135 FROM EUR 115
ALLIANZ: CREDIT SUISSE RAISES TARGET TO EUR 165 FROM EUR 130

CORUS (NASDAQ:UK): ING DOWNGRADES TO SELL FROM HOLD
RIO TINTO: ING LIFTS TARGET TO GBP30.98 FROM GBP25.70
RIO TINTO: ING DOWNGRADES TO HOLD FROM BUY
MITTAL STEEL: ING UPS TARGET TO EUR 31 FROM EUR 28, BUY
BHP BILLITON: ING RAISES TARGET TO GBP12.25 FROM GBP9.63, BUY

LOGICACMG (UK): ING REMOVES CO. FROM EQUITY FOCUS LIST
INBEV: ING RAISES TARGET TO EUR 43.0 FROM EUR 37.2, BUY
SBM OFFSHORE: ING HIKES TARGET TO EUR 93 FROM EUR 77, BUY
ELECTROLUX: CREDIT SUISSE DOWNGRADES TO UNDERPERFORM FROM NEUTRAL
ING GROEP: CREDIT SUISSE LIFTS TARGET TO EUR 34.0 FROM EUR 30.4
ZURICH FINANCIAL: CREDIT SUISSE DOWNGRADES TO UNDERPERFORM FROM NEUTRAL

CHEMICALS: CREDIT SUISSE UPGRADES SECTOR TO MARKET WEIGHT VS U/W
SWISS CHEMICAL SECTOR: GS UPGRADES TO OVERWEIGHT
XSTRATA: CITIGROUP LIFTS TARGET TO GBP18.00 FROM GBP15.00, BUY
STATOIL: CITIGROUP UPS TARGET TO NOK185 FROM NOK175, BUY
RIO TINTO: CITIGROUP UPS TARGET TO GBP31.50 FROM GBP27.00, HOLD
LONMIN: CITIGROUP RAISES TARGET TO GBP21.50 FROM GBP15.50, BUY
CORUS (UK): ING TRIMS TARGET TO GBP0.53 FROM GBP0.55

** EUROPEAN HEADLINES **

- SAP Predicts 2006 Software License Sales Will Climb as Much as 17 Percent
- Germany’s Business Confidence Probably Increased in January, Survey Shows
- Nokia’s Ollila May Say Profit Growth Stalled as Handset Prices Declined
- STMicroelectronics Forecasts Sales May Rise on Chips for New Mobile Phones
- U.K. Economic Growth Probably Accelerated in Fourth Quarter, Survey Shows
- Linde Is Seeking Support From BOC Group’s Board for $13.5 Billion Takeover
- Equity Strategists: HSBC Trinkaus Favors Bechtle, German Technology Shares
- SKF May Say Profit Rose on Ball Bearing Demand From Asian Manufacturers
- Crude Oil Falls for Third Day as Warm U.S. Weather Saps Demand for Heating
- Siemens Investors Demand Kleinfeld Stem Technology Losses as Profit Drops

** IN PLAY TODAY **

- Accor SA (AC FP): The world’s fourth-largest hotelier may
say fourth-quarter sales rose to 1.93 billion euros ($2.37
billion), helped by demand for budget accommodation in the U.S.
and price increases in France, according to the median of five
estimates gathered by Bloomberg. Year-earlier figures weren’t
available.

- Adidas-Salomon AG (ADS GY): The world’s second-biggest
maker of sporting goods secured European Union antitrust
approval for its $3.8 billion planed takeover of Reebok International.

- Altana AG (ALT GY): The drugs and chemical company
controlled by the billionaire Quandt family may say fourth-
quarter sales climbed 21 percent from a year earlier to 881
million euros, helped by the purchase of metallic pigments maker
Eckart GmbH & Co., according to the median estimate of nine
analysts in a Bloomberg survey.

- Banco Bilbao Vizcaya Argentaria SA (BBVA SM): Spain’s
second-biggest bank may say fourth-quarter profit rose 30
percent from a year earlier to 962 million euros, as it reaped
more revenue from Mexico and elsewhere in Latin America. This
median estimate is based on seven analysts surveyed by Bloomberg
News.

- BASF AG (BAS GY): The world’s largest chemical company
won’t raise its unsolicited bid for U.S. catalysts maker
Engelhard Corp. (EC US), which on Jan. 23 rejected the original
$4.9 billion offer. BASF may consider sweetening the offer by $1
a share if Engelhard offers information that shows the bid is
low.

- Bayerische Motoren Werke AG (BMW GY): The world’s largest
maker of luxury autos is scheduled to release full-year 2005
revenue figures.
Separately, the head of the carmaker’s U.S. division, Tom
Purves, expects another “record year'’ in the U.S. The stock
added 7 cents, or 0.2 percent, to 35.95 euros.

- OMV AG (OMV AV): The largest oil company in central Europe
said it’s in negotiations with Dogan Sirketler Grubu Holdings
AS, the owner of Turkey’s biggest chain of gas stations, about a
distribution and exploration accord.

- Sanofi-Aventis SA (SAN FP): The world’s third-biggest
drugmaker may be active after the U.S. Food and Drug
Administration gave its final approval for the sale of Apotex
Inc.’s generic version of Sanofi’s blood-thinning drug Plavix.
Sanofi-Aventis shares fell 1.3 euros, or 1.7 percent, to
73.85 euros.

- SAP AG (SAP GY): The world’s largest maker of business-
management software may forecast that this year’s license
revenue may increase 13 percent to 3.1 billion euros this year,
which compares with an 18 percent gain last year. This median
estimate is based on 11 analysts surveyed by Bloomberg News.
Fourth-quarter profit is expected to climb 14 percent to 617
million euros, according to analysts’ estimates.

- STMicroelectronics NV (STM FP): Europe’s second-largest
maker of semiconductors said fourth-quarter profit fell to $183
million euros from $187 million a year earlier. That was more
than the median estimate of $162 million from nine analysts
surveyed by Bloomberg News.