DB Research Europe

**For Institutional Use Only**

Recommendation Changes Ticker Pub. Date New Reco Old Reco Diageo [ Hold ] DGE.L 29-Jul ▼ Hold Buy Luceco PLC [ Hold ] LUCEL.L 28-Jul ▼ Hold Buy

Target Price Changes Ticker Pub. Date New TP Old TP Chg (%) Inchcape [ Hold ] INCH.L 29-Jul ▲ Man Group [ Hold ] EMG.L 28-Jul ▲ Safran [ Buy ] SAF.PA 28-Jul ▲ Sika [ Hold ] SIKA.S 28-Jul ▲ TeamViewer AG [ Hold ] TMV.DE 29-Jul ▲ Unite Group PLC [ Buy ] UTG.L 28-Jul ▲ Entain PLC [ Buy ] ENT.L 29-Jul ▼ Hypoport SE [ Buy ] HYQGn.DE 28-Jul ▼ Italgas [ Hold ] IG.MI 28-Jul ▼ Mercedes-Benz Group [ Buy ] MBGn.DE 28-Jul ▼

DIAGEO (DGE.L) - Down to HOLD following outperformance; Buy to Hold, Tgt Unch. at 1700p. Last Close 1672p. Mitch Collett: We downgrade Diageo to HOLD from Buy following its outperformance. Since we upgraded on 31 March, the shares are +22%, outperforming SX3P by 11%. Our underlying estimates are broadly unchanged. Our PT remains 1,700p is on an unchanged DCF methodology despite rolling our valuation to FY27 from FY26. Diageo will report FY26 results and provide a strategy update on 6 August. Our expectations for this are unchanged and we continue to expect FY26 to be in-line with consensus with a 'reset' in FY27 to drive competitiveness. However, there is a broad range of potential outcomes with greater downside than upside risk, in our view. We continue to believe consensus expectations for both FY27 and beyond remain materially too optimistic (DB EPS 10% below Bloomberg consensus).

LUCECO PLC (LUCEL.L) - Pausing the 2026 upgrade cycle; Buy to Hold. Tgt Unch. at 260p. Last Close 225p. Kevin Fogarty: Luceco has seen revenue growth accelerate during Q2. Expectations for H1 26 revenue of c.£143m equates to a c.+15% YoY uplift in Q2, vs. growth of +11% YoY in Q1. For H1 26, management expects to report adj. EBIT of c£15.8m, implying a YoY uplift of c.14%, while the implied H1 26 adj. EBIT margin of 11.1%, equates to a 10bps YoY uplift, in spite of commodity price headwinds. Core products delivered revenue growth of c.6% for H1 26, comparable with the Q1 run rate. However, growth in Energy Transition revenue is c.120% YoY for the first six months of the year, from c.80% in Q1.

ENTAIN PLC (ENT.L) - Focus on profitable US growth; Entain preview; Tgt 1028p to 950p. Last Close 573.8p. Buy. Richard Stuber: BetMGM has reported 2Q revenue of $711m, +3% yoy, representing a slight slowdown vs. 1Q (+6%). iGaming revenue, which now represents c.70% of BetMGM, remained robust at +9% (1Q +9%) despite increased competition in certain iGaming states from new entrants. Conversely, sports experienced a slowdown to 0% from +4%; this in part reflected a step-up in competitive intensity from prediction market and online sportsbook operators driving up CPAs but also the group focusing marketing efforts on iGaming and multi-product states in particular, where it sees better returns. EBITDA reached $99m (below the wide-ranging consensus of $113m), down 9% yoy reflecting negative flow-through of revenue growth due to tax increases in 2H.

HYPOPORT SE (HYQGn.DE) - Can market share gains offset higher-rate headwinds?; Tgt EUR160 to EUR153. Last Close EUR81.8. Buy. Olivia Pulvermacher: Hypoport pre-released 2Q gross profit of EUR67m (+5% YoY), while EBIT was broadly stable at EUR7.3m (-1%), with the margin on gross profit declining to 11% from 12% in 2Q25/FY25 and 17% in 1Q26. Previously-reported operating KPIs showed Europace volumes stable YoY at EUR18.0bn despite Bundesbank mortgage volumes falling 7% in April/May (June pending), implying further market share gains. QoQ, Europace volumes declined 11%, largely reflecting the pull-forward of financing decisions into late 1Q following the sharp rise in mortgage rates after the Iran-related market disruption. A similar rate-driven effect led to an 11% QoQ decline last year, creating a favourable comparison base. Full results will be published on 10 August.

MERCEDES-BENZ GROUP (MBGn.DE) - Cost Control Holds, Cash Return Remains Attractive - Q2 review; Tgt EUR74 to EUR73. Last Close EUR46.62. Buy. Tim Rokossa: Mercedes reported Q2 results that we view as a decent outcome relative to expectations. The Cars division delivered an adj.…