The Point for Europe Tuesday, 08 September 2026

The Point for Europe Tuesday, 08 September 2026

Top Call | Company | Industry | Strategy & Economics | Commodities | Key Rating and Target Price Changes

Top Call Must Read European Economics - Back to School: Remarkable Endurance Likely to Global Economic Outlook & Strategy - Continue Renewed Uncertainties—But The Eurozone economy continues to grow, slowly but steadily, despite numerous Continued Resilience exogenous shocks. We expect it to look through also the latest spike in gas prices and rising bond yields. We see GDP growth being close to 1% this year and accelerating to 1.5% in 2027. Giada Giani | Arnaud Marès | Michel Nies

Western Europe Electrical Equipment and Machinery - Back to School 2H’26: Broadening Theme Gaining Momentum Top picks into 2H’26 include Buy-rated Legrand, Daimler Truck, Atlas Copco, Epiroc, KION, Halma, Nordex, Weir, and Sell-rated Wartsila. In parallel notes we have upgraded KION and Nordex to Buy, and opened positive Catalyst Watches on Legrand and Halma. Sector growth momentum is improving, with average growth reaching +7% in 2Q'26, the best since the post-COVID recovery and a similar pace to the 2018 expansion, with the improvement in growth this year relatively broad- based. The area of strongest growth remains the US datacentre complex, where activity has actually continued to surprise positively this year. Nonetheless, growth is also gradually broadening too, in part from spillover effects. Sector valuation on aggregate remains full. We see a bar-bell approach as appealing between the growth names exposed to structurally attractive markets (e.g. Legrand, Atlas, Epiroc, Weir) and selective cyclical exposure (e.g. Daimler Truck, KION). Martin Wilkie | Klas Bergelind | Vivek Midha, CFA | Siron Ng | Avinash Mundhra

KION Group (KGX.DE) - Upgrade to Buy We remain positive on the drivers of growth in warehouse automation – especially around physical AI adoption – but we think a potential inflection in the industrial truck cycle is what can drive KION shares in the near term. Improving German macro data – including from the infrastructure bill – points to acceleration in industrial trucks into 2027, which, combined with ongoing improvement in the IAS division, could now lead to a re-rating of the shares. We think China competition concerns are overdone, especially in high end trucks, and any incremental protectionism from the EU (see our note here) should alleviate these concerns on the bear case. We see margins expanding and sales growth recovering to >6% in _ 2027, the highest since the COVID pandemic. With our EBIT forecasts already _

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>10% ahead of consensus in 2027 and 2028, and valuation close to trough, we upgrade to Buy with a revised Target Price of €62. Martin Wilkie | Avinash Mundhra

Legrand (LEGD.PA) - CMD can act as a re-rating event We are opening a positive catalyst into Legrand's investor day on Sep 29th. We think the mid-term organic revenue could likely be raised to 5-8% (from 3-5%) and the 2030 revenue target be increased to €15-17bn (from €12-15bn). As important will be the message on technology, we think the "800 volt loser" narrative is misplaced and expect the company to deep-dive into its technology offerings and direct hyperscaler relationships. Buy. Martin Wilkie | Avinash Mundhra

Halma PLC (HLMA.L) - Opening positive catalyst watch into September trading statement We expect Halma's upcoming trading statement on/around September 24th to serve as a positive catalyst on the perception of Photonics, given recent commentary from key hyper-scalers. We open a positive catalyst watch and retain our Buy rating. Martin Wilkie | Avinash Mundhra

Daimler Truck Holding AG (DTGGe.DE) - Back to School - Inside the Debate Lots of debate on DTG and other truck names, focusing on MY27 pricing and September onward order trends. Investor feedback is that the 11k likely price uplift on MY27 over MY26 engines appears high and that while the price increase would be great for the DTNA margin it would hurt DTG’s market shares. We still think DTG’s pricing will be competitive when taking into account both…