Citi The Point for Europe Wednesday, 29 July 2026

The Point for Europe Wednesday, 29 July 2026

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

Top Call Must Read Rentokil (RTO.L) - Narrowing the gap: could this be the beginning? Global Economic Outlook & Strategy - Rollins has significantly outperformed Rentokil in terms of growth, margins and Renewed Uncertainties—But cash conversion in recent years. Following Rollins’ Q2 warning we wonder if this Continued Resilience could be the turning point, with Rentokil finally narrowing this performance gap. Marc Van'T Sant | Arthur Truslove | Saifabbas Sayed

GSK PLC (GSK.L) - Key takes from GSK "Accelerate Growth" event We provide key takes from GSK's "Accelerate Growth" event, in which it announced a £1.9bn annual cost savings programme by 2029, to be reinvested into the late- stage pipeline and a portion supporting margins through the DTG LoE period 2028–30, accelerating 7 assets in 18 indications and 25 PIII studies (20+ PIII starts in 2026 vs 10 previously). Although there was limited wholly new information, the event served as a good reminder of the increasing breadth and pace of development across the pipeline, in our view. GSK reconfirmed its >£40bn 2031 sales target, with future BD additive rather than required, and expects accelerating growth 2031+. While encouraging, we are less sanguine about 2031 and beyond and continue to see further execution required to give us confidence GSK can offset the HIV patent cliffs. Maintain Neutral. Graham Parry | Amy Y Mao | Leolie Telford-Cooke Ph.D. | Jelena Milovic | Mahesh Mohankumar

United Kingdom Supermarkets - Implications of TSCO’s launch on Uber Eats/Deliveroo for TSCO/SBRY Post TSCO’s 21-Jul announcement that it will be launching on Uber Eats and Deliveroo later this summer, we examine in more detail the opportunity in rapid- delivery grocery for TSCO/SBRY. TSCO currently serves the market solely via its own platform, Whoosh, whilst SBRY’s on-demand offering is primarily via third- party platforms. We assume that TSCO’s launch on Uber Eats/Deliveroo could result in TSCO gaining c.20pts of share of the on-demand market, with SBRY and others therefore likely to cede some share. We think this could represent a c.-0.4% annualised sales downgrade to SBRY in FY27e. Whilst for TSCO, we calculate a potential c.+0.6% annualised tailwind to FY27e sales. Monique Pollard | Elizabeth Moore | Vandita Sood | Jamie Bass

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

Safran (SAF.PA) - Safran: Flying High, Priced As Such Following 1H26 results, we increase group EBIT for FY26 to €6.6bn (guide: €6.4– 6.5bn), now assuming 9% CAGR for FY26–31 (8% prior). Within this, we now model LEAP aftermarket profits represent c.50% of Narrowbody by 2030 (45% prior), as indicated by GE recently, with our Propulsion margin averaging 24% in 2026–30 (troughing at 22.5% in 2028 with retirements peaking; NB we are forecasting €8bn EBIT vs Safran's €7–7.5bn target). Taking a step back, as we currently expect HSD% medium-term CAGR, at 21x EV/EBIT the shares look broadly fairly valued to us despite our acknowledgement of a remarkably strong current operating environment. For us to turn buyers at the current share price, we would need to believe in a c.13% CAGR in the medium term, significantly higher than the 8–10% done by the company historically (outside of 2023–26). Price target moves to €345 (from €315); we remain Neutral on the shares. Conor Dwyer

AB-InBev (ABI.BR) - Risk/reward skewing positively into results. We expect solid US OSG/profit delivery and upcoming CMD to be supportive. ABInBev is on-track to deliver against consensus FY26E estimates and we expect management to reiterate its FY26E 4-8% organic EBITDA guidance at its July 30th Q2/H1 results. We forecast Q2 volumes growth of +0.6%, held back by China. Elsewhere, and despite the earlier than perhaps hoped exit of some ABInBev market teams from the global football tournament, we expect solid Q2 volume delivery; especially in LatAm and the US. Crucially, the US business should report solid share gains, strong growth from Beyond Beer and…