Vienna Stock Exchange: Winners and Losers (2012-05-14)

Cheuvreux confirmed the recommendation Underperform for OMV and cut price target to € 27.00 from € 29.00.

UBS cut the Wienerberger price target to € 8.8 from € 10.0 due to Q1 figures and confirmed the recommendation Neutral.

The Berenberg Equity Sales Team’s commented on newsflow according Sugar stocks (ABF/Suedzucker /Agrana): Global sugar prices continue to fall, following India’s decision to remove limits on export volumes to an already over-supplied global market. India’s export surplus is c.4m tonnes. To put this in context, the deficit in the EU (the reason for high EU sugar prices and exceptional processor profitability) is c.3m tonnes, analysts stated. While little of this is likely to find its way into the EU market (due to import tariffs), it could start to make the EU a more attractive export market for the tariff-free countries (LDCs, APCs) – ultimately putting downward pressure on the EU sugar price. This is particularly relevant now as the EU processors are starting their annual pricing round for the “sugar marketing year” starting this October, Berenberg explained. ABF remains bullish on EU prices, and analysts may get some more colour from Suedzucker and Agrana when they report FY results this Tuesday (15 May). Weakness in the EU sugar price would be extremely negative for processor profitability. Key to watch will be the Brazilian harvest (crushing just commenced), which accounts for 50% of global exports. On the more bullish side, the sugar price showed a similar dip this time last year (again on surplus supply), yet the EU processors still managed to secure large price hikes, analysts said.