JPM Europe Equity Research | Today’s Morning Meeting

Europe First to Market 10 August 2026

Today’s Morning Meeting | Also Published Today | Key Changes | JPM Events | Upcoming Earnings

Today’s Morning Meeting Equity Strategy (Mislav Matejka, CFA)

Stay bullish on equities; Cyclicals are rallying past Low Vol stocks again

We remain positive on stocks, countering numerous concerns, ranging from geopolitics to inflation fears, concentration risk, cycle direction, bond market selloff and other considerations. We believed equity indices should be making fresh all-time highs in 2H, and look for further upside. Beneath the surface, we advocated for a rotation and broadening in the past 2 months. We think participation should pick up further in 2H, even as we called in the past two weeks for momentum trade and Semis in particular to show a recovery. Having said that, we do not expect Tech to be a clear winner in 2H, unlike what transpired last summer. Increased volatility seems here to stay, and profitability concerns are likely to keep coming back from time to time. We continue to see big differences to 2022, we don’t expect much inflationary pressure to materialize, and believe central banks won’t need to become increasingly more aggressive. Labour market backdrop is mixed, we continue to highlight a range of datapoints suggesting sentiment over jobs is soft. This in turn could lead to “bad is good” equities reaction, as it negates the need for the Fed to worry about overheating. If USD is weaker, equities in general and International stocks in particular benefit. Our view was that the Q2 reporting season would be reassuring for equities. Both US and Europe are printing 20%+ yoy EPS growth rates. Finally, two months ago we had called for some consolidation in beta, and for Low Vol group to bounce. Our view at the time was that the Defensives recovery, including Healthcare and Staples, was likely to be only tactical, to last for a few weeks, and not to spill over into 2H. We continue to believe this to be the case, and have most recently called for beta to resume rallying. If the macro outlook we envisaged for 2H keeps gaining traction, that should be supportive for further equity upside, but also for more of a high beta outperformance. We note Low Vol groups have rolled over again. The nascent yield curve steepening would also help Cyclicals. Within Cyclicals, we have recently highlighted Banks, Mining, Industrials, and Consumer Cyclicals as attractive. This is in addition to a likely stabilization in the Semis trade.

CSG (David H Perry, CFA) (CSG NA, OW)

H1 26 Adj EBIT beat and continued positive momentum

Our Take: CSG has reported H1 26 Adj. EBIT 3% ahead of company-compiled consensus. It has reiterated its FY26 and mid- term guidance. This is CSG’s third solid set of results since its IPO in Jan 2026. It is trading at a significant discount to its closest peer RHM. We reiterate our Overweight rating.

EMEA Equity Research AC Europe Equity Research ( August 2026 JPMORGAN

Company Research CTS Eventim (Lara Simpson) (EVD GR, OW)

Q226 Preview: Underlying momentum intact with FY26 EBITDA unchanged - focus on LA28 and Live phasing

Harbour Energy (Alejandra Magana) (HBR LN, N)

Henkel (Celine Pannuti, CFA) (HEN3 GR, UW)

Model update: Raise EPS 26E c3.5%, though risk of H2 LFL slowdown

Kazatomprom (Anna Antonova, CFA) (KAP LI, N, PT $90.00)

KGHM (Anna Antonova, CFA) (KGH PW, N, PT zl340.00)

Kingspan (Elodie Rall) (KSP ID, N)

Model update post H1 results; increasing estimates by 7% for 2026E and 13% for 2027E

Novartis (Richard Vosser) (NOVN SW, OW)

A new dawn for CV risk reduction may not emerge from the HORIZON

Sandoz (Sophia Graeff Buhl Nielsen) (SDZ SW, OW)

Updating for Q2: Minor updates to estimates, continue to see FY’26 biosimilar driven top-line acceleration; Sep 8th CMD in view

Sector Research European Chemicals (Chetan Udeshi, CFA/Angelina Glazova, CFA)