Jefferies European Equity Daily

European Equity Daily 9th October

Who's Impacted by Muse? Insurance AI is becoming a bigger industry debate, with investors increasingly favouring large, efficient insurers as likely winners. While customer inertia may slow disruption, market-share shifts could pressure smaller insurers and, over time, reduce reinsurance demand. Zalando We revisit our February analysis and assess how agentic AI could reshape online retail, consumer discovery and the competitive positioning. Conclusion: clothing retail should be a relative winner. Rating Changes dormakaba A credible US market-share opportunity and ongoing margin expansion provide an attractive growth outlook. Despite the unwind of a long-standing ownership overhang, the shares trade near valuation lows. Upgrade to Buy. Generali We downgrade to Hold. While a strong operational turnaround has justified a significant re-rating in the shares, we see limited further valuation upside and see potential near-term sentiment headwinds. Best of the Rest Housebuilders With the sector trading at just 65% of 2026 NTAV, proposed UK housing support measures could drive volume growth, operating leverage and meaningful upside to forecasts and valuations. Kingspan Following our upgrade to Buy, investor feedback remains constructive. We continue to see growth in the data-focused Advnsys division as underappreciated, supporting further upside potential. Lindt We cut our PT by 14% and retain Underperform, as we believe the margin reset is not yet complete. Our FY27-28 estimates remain ~10% below consensus, with further downside risk as the company balances volume recovery against profitability. BAT BAT’s CMD reinforced confidence in Next Generation Products as a multi-year growth driver. Stronger cost discipline and resilient US combustibles support margin expansion, while valuation remains attractive. Reiterate Buy. Global Highlights Japan - Quant Following the sharp summer correction, investors have rebuilt semiconductor exposure, while governance reforms continue to fuel Japan’s buyout and parent-subsidiary restructuring cycle.

US - Shopify Shopify’s push for nationwide money transmitter licences could deepen merchant relationships and unlock new monetisation opportunities. We see a meaningful tailwind to growth and profitability as payments capabilities expand. Australia - Codan We believe the market underestimates its exposure to the rapidly expanding unmanned warfare market. Strong earnings growth, M&A optionality and a net cash balance sheet underpin our initiation at Buy. India – Healthcare Hospital stocks have corrected sharply over regulatory fears around consumables and oncology drug pricing, however we see the earnings impact as limited to 2-5%. Past regulatory overhangs have typically proved attractive entry points.

Expert and Corporate access Event and registration details inside. • SMID / DACH German-Speaking Field Trip (3-4 Nov) • Healthcare / Jefferies Global Healthcare Conference in London (16-19 Nov) • Consumer / Jefferies November Miami Consumer Conference (17-18 Nov) • GEM / Jefferies GEM Conference in Dubai (23-24 Nov) • Industrials / Jefferies Paris Industrials Summit (24-25 Nov)

THEMATIC / MACRO GLOBAL INVITE—Rep. April Berg (WA) on State AI and Data Center Policy in the U.S. GLOBAL INVITE—The Buildout: Financing the AI Boom with Stijn Van Nieuwerburgh ASIA MAXIMA Reverberating tremors USA SMID-Cap Factor Scorecard—Momentum Was Back in Town; Balance Sheet Lost Luster

FOCUS RESEARCH AHOLD DELHAIZE (AD NA, BUY, PT: €40) Margin Pressure, Not Where You'd Expect AMUNDI (AMUN FP, BUY, PT: €105) 3Q Preview: Strong execution, more complex backdrop CARREFOUR (CA FP, HOLD, PT: €14.50) The Cora Ramp At Carrefour JERONIMO MARTINS (JMT PL, BUY, PT: €21) Past the Peak of Polish Pain? REPSOL (REP SM, BUY, PT: €35) REP into 3Q: Billion Dollars More for Buyback

PRICE TARGET CHANGES AHOLD DELHAIZE (AD NA, BUY, PT: €40) Margin Pressure, Not Where You'd Expect ALLIANZ (ALV GR, HOLD, PT: €440) Managing Yields AMUNDI (AMUN FP, BUY, PT: €105) 3Q Preview: Strong execution, more complex backdrop COLOPLAST (COLOB DC, BUY, PT: DKK575) Thoughts Ahead of FY26 results