Of the 10,177 ratings on MSCI Europe companies at the end of November, 4591 were Buy ratings, 3874 were Hold ratings, and 1712 were Sell ratings. Since June 30, the number of Buy ratings on companies in the index has declined by almost 11% (to 4591 from 5143), while the percentage of Sell ratings has increased by nearly 23% (to 1712 from 1393). At the sector level, the Information Technology sector has witnessed both the largest percentage decline in Buy ratings (-21%) and the largest percentage spike in Sell ratings (+43%) of all ten sectors over this period. In addition, the Information Technology sector was the only sector that had a lower bottom-up target price than closing price on November 30.
Within the Information Technology sector, three companies have recorded percentage decreases of 45% or higher in Buy ratings and percentage increases of 65% or higher in Sell ratings: Sage Group PLC, Alcatel-Lucent, and Infineon Technologies AG. Over this time frame, Sage Group PLC has recorded a 75% drop in Buy ratings (to 3 from 12) and a 600% jump in Sell ratings (to 7 from 1). Alcatel-Lucent has recorded a 54.5% decline in Buy ratings (to 5 from 11) and a 77.8% spike in Sell ratings (to 16 from 9). Infineon Technologies AG has recorded a 47.1% decrease in Buy ratings (to 9 from 17) and a 66.7% increase in Sell ratings (to 5 from 3). In addition, Amadeus IT Holding S.A. has witnessed a 58.3% drop in Buy ratings (to 10 from 24). A percentage increase in Sell ratings cannot be calculated for Amadeus IT Holding S.A., as there were no Sell ratings on the company on June 30 (there are 3 today).
Read more about the targets and ratings of companies in the MSCI Europe in this month's edition of FactSet Targets & Ratings: Europe. Visit www.factset.com/targetsratings_euro to launch the full report.