Shares in D'Ieteren SA jumped nearly 8 pct after being upgraded to 'buy' from 'hold' at ING Securities following the Belgian automotive leasing group's agreement for glass repair subsidiary Belron to acquire US peer Safelite Group, traders said.
At 9.23 am, D'Ieteren was up 21.80 eur or 8.07 pct at 292.10, while the Bel 20 edged up 6.74 points or 0.16 pct to 4,536.79.
"The earnings-accretive deal, which will provide a leadership position in the US, should lead to a richer valuation multiple," said ING analyst Arnaud Goossens in a note to clients.
He also praised the strong share price performance of Avis Europe, which is 59.6 pct owned by D'Ieteren, and upped his sum-of-the-parts-derived target price for D'Ieteren to 320 eur from 272.