Credit Suisse upgrades Continental Europe to 'benchmark' on
the back of improved economic momentum, and cites Deutsche Post
and Atos as among those firms with good
domestic exposure and an improving earnings outlook.
"Critically, peripheral Europe and domestic demand proxies
are improving. For the first time this year, Continental Europe
is no longer bottom of our macro scorecard," it says in a note,
adding there is more fiscal flexibility in the euro area and
France is showing signs of reforms.
It upgrades France to 'benchmark', flagging the market's
attractive valuation and improving economic data, and ranks Axa
, Publicis and Lagardere as
'outperform' because of their positive earnings revisions.
Credit Suisse says it is 'overweight' on media, hotels,
software, autos and airlines sectors and finds Ahold,
Adidas and Nestle looking abnormally cheap
versus U.S. peers.