Citi The Point for Europe Thursday

The Point for Europe Thursday, 30 July 2026

Top Call | Company | Industry | Fixed Income & FX | Key Rating and Target Price Changes

Top Call Must Read Hermes (HRMS.PA) - Margin-led beat; growth outlook stable, no China rebound yet Global Economic Outlook & Strategy - Renewed Uncertainties—But Solid 1H26 results compared to peers, yet in line with expectations: 1) 2Q26 sales Continued Resilience +7% cFX (cons. +7%; 1Q26 +6%), with slight beats in Silk & Textiles/Watches/France/Middle East offset by misses in Leather/Perfumes; 2) 1H26 EBIT beat by ~2% (+7% YoY; EBIT margin -30bp YoY to 41.1% vs. cons. 40.4%), driven by better-than-expected gross margin (+40bp YoY to 71.1% vs. cons.-50bp) despite FX headwinds, and opex discipline (+4% YoY vs. cons.+3%); With July likely holding up sequentially (possibly slightly below consensus 3Q26E +8%), CEO comments of stabilisation but no rebound in China, continued softness in non-Leather categories (+4% vs.+3% in 1Q26), expected support from improved product mix and flagship openings in 2H26E (London, Geneva), and modest cost inflation/investment, we expect limited changes to FY26E consensus sales and EBIT. Shares have derated ~20% absolute and relative towards ~33x FY27E P/E after underperforming over the past 12... Thomas Chauvet

Ypsomed Holding AG (YPSN.S) - Revising estimates; reiterate Buy We update our estimates to reflect the qualitative 1QFY26/27 update and recent trends: we lower our FY26/27E group revenue estimate by c.4%, but raise our estimates for the outer years, resulting in an increased FY26/27-30/31E group revenue CAGR is of 12.8% vs. 11.4% previously. We raise our EBIT margin assumptions by c.70bps p.a. on average through the forecast period to reflect benefit from Ypsofit self-help program; our margin projections are in-line with consensus for the current year and c.80bps ahead for the following two years. Despite the stock's outperformance vs. EU MedTech over the last three months (Ypsomed +40% vs. EU MedTech +10%), it still trades at a discount to its peer group while delivering superior growth outlook and margin profile. We reiterate our Buy rating with a new price target of SFr455. Giang H Nguyen, CFA | Veronika Dubajova | Harry Shrives Ph.D., CFA

See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations.

Arm Holdings PLC (ARM.O) - Strong Quarter with FY27 outlook modestly improved Arm reported F1Q27 results with a 1% beat on sales and an 11% beat on profits, while the F2Q27 guidance was 3% ahead on sales and 10% ahead on profits at the mid-point. We view the quarter positively, with Cloud AI and licensing strength more than offsetting a softer handset outlook driven by demand and mix. We raise FY27 sales/EBIT by 1%/4%, although longer-term estimate changes are modest. Mgmt. also flagged stronger AGI CPU demand to over $2bn and improving visibility. We continue to view Arm as a key AI infrastructure beneficiary with the pullback as an enhanced opportunity. Retain Buy with a $300 TP. Pavan Daswani, CFA

CaixaBank SA (CABK.MC) - Investor feedback: market reaction appears driven by positioning rather than fundamentals Based on our investor conversations on CABK following today's results conference call, the share price weakness (down c.-6% today) appears to be driven more by positioning and expectations than by any deterioration in underlying fundamentals. Investors generally acknowledged that the modest NII miss was largely technical in nature, while underlying trends around loan growth and margins, and tailwinds from higher interest rates remain intact. In some cases, investor expectations may have been anchored to NII scenarios above current sell- side consensus, reflecting a more supportive forward rate environment. As a result, the absence of an upgrade in NII guidance may have triggered a reassessment of these upside earnings scenarios. Borja Ramirez Segura | Anand Demble | Andre Nemec

Eni (ENI.MI) - Post 2Q26 Model Update Following 2Q26 results and upgraded company guidance, we update our Eni forecasts by raising 3Q26e GGP & Power EBIT by 70% to reflect stronger gas, LNG and trading conditions, and increasing 3Q26e Enilive…