JPM Europe Equity Research | Today’s Morning Meeting

Europe First to Market 17 September 2026

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

Today’s Morning Meeting | Sodexo (Estelle Weingrod) (SW FP, OW)

Well catered for - Upgrade to OW with new €68 PT (~20% upside)

We upgrade Sodexo to OW from N as we see the set-up turning more constructive. Sodexo has started to price a turnaround (now on ~8x 1 yr fwd vs ~7x post H1 reset), and we see scope for further upside as evidence of commercial momentum becomes more visible and delivery consistency improves. We see an approaching inflection, with FY 27 likely the first year to break the downtrend in new development, and the recent Meta award an important proof point, even if progress is unlikely to be linear. At the same time, the stock still screens inexpensive on our numbers versus history and peers, leaving room for estimate upgrades (what the market is asking for) and multiple re-rating (5 yr avg pre COVID at ~9.5x 1 yr fwd EV/EBITDA). Net-net, we are upgrading because the risk/reward is becoming more asymmetrically skewed to the upside as win/retain momentum improves, with a gradual profitability and cash recovery the key medium-term bridge. Sodexo is trading on FY 27E/28E EV/ EBITDA of 8.3x/7.5x and a ~4.5%/5.5% FCF yield. Our new PT implies no material re-rating from here, while the stock remains at a meaningful discount to peers (with a relatively high short interest).

A guide for new investors: Why Greek banks deserve your attention

Greek banks have moved beyond balance sheet repair toward a growth and convergence story. Greece’s solid macro backdrop, clean bank balance sheets, unusually strong deposit franchises and highly consolidated market structure support our positive mid-term view. We forecast a 12% EPS CAGR over 25-28, driven by 8-10% loan growth, higher NIMs and double- digit fee expansion, sustaining mid-teens ROTEs through the cycle. The sector’s inclusion in SX7E should broaden the investor base, while continued MSCI EM membership until May-27 creates an unusual period of overlapping EM-DM benchmark ownership. After several years of outperformance, the system-level valuation discount to core European banks has now largely closed, but Greek banks still trade at a ~10% discount to more comparable Southern European and CEE peers despite offering faster EPS growth, while our European Banks team’s constructive sector view provides a supportive backdrop (link). We remain OW on all four banks with ~20-30% upside potential, and Eurobank and Piraeus our preferred names. Alpha’s investor day on Nov 5 is a key watch event.

Global Truck (Jose M Asumendi)

Hannover Truck Show: DTG CEO’s to-do list, 16 Chinese Truck OEMs, Potential EU Truck Emission delay

We visited the IAA Hannover and met with a range of different truck OEMs across all regions with a key focus on European and Chinese Truck OEMs present at the truck show. Overall, we heard positive comments with regards to the heavy truck sales

EMEA Equity Research AC Europe Equity Research ( September 2026 JPMORGAN

momentum across Europe and North America, which should lead to a relatively strong second half earnings season for the stocks under our truck coverage. Please find below some of the key takes from the day in Hannover across: a) DTG – the positive highlight of the day; b) what the market is not focussed on but we think is important; c) where we stand on Chinese Truck OEMs entering Europe; and d) a step back on meeting emission targets in Europe.

Agentic AI for Dynamic Factor Investing (Ayub Hanif, PhD/Khuram Chaudhry)

LLM driven signals for regime classification and equity factor rotation

We extend Agentic AI from regime identification into factor timing, asking whether a tightly scoped LLM agent can turn a broad macro pack into usable cycle calls. The results are encouraging, but conditional. The agent reasons coherently when real macro data are present, newer models show less directional skew, and selective committees improve the signal. The QMI (JPM’s macro-navigational tool) remains the trusted systematic reference; the opportunity is to use Agentic AI as a complementary input to dynamic factor timing as model capabilities…