European Daily Focus: Tuesday, 12th May 2026

Research evidence excerpt

European Daily Focus: Tuesday, 12th May 2026

Deutsche Bank

Research

Europe Strategy Date

12 May 2026

European Daily Periodical

Focus

Tuesday, 12th May 2026

Jonathan Jayarajan

TOP STORIES Research Analyst

ESSILORLUXOTTICA (ESLX.PA) - Awaiting Clearer Sight; Initiating with Hold +44-20-754-76037

Falko Friedrichs: Initiate with Hold, Tgt EUR183. Last Close EUR167. We are

initiating coverage on EssilorLuxottica with a Hold rating following softer[1]than-

expected Q1 results. Although the stock has de-rated by more than 40% since the

end of last year, we see further risks from weakening consumer sentiment, driven

by the conflict in the Middle East. Arguably more important for the investment case

is the emerging competitive threat from companies like Alphabet and Apple, who

are reportedly planning to launch AI glasses soon. This could challenge

EssilorLuxottica's leading position in the category, which it has built in partnership

with Meta. We believe the stock is unlikely to outperform until there is more clarity

on these macroeconomic and competitive overhangs.

TKMS (TKMS.DE) - Encouraging H1 26 results Figure 1: Table of Contents

Sriram Krishnan: Tgt EUR110. Last Close EUR73.50, Buy. Post H1 we reiterate our

Top Stories Page 01

positive view on TKMS on the back of Submarine business turnaround, growing Target Price Changes Page 01

backlog and improving outlook for Surface vessels and Atlas divisions. Recent Company Updates Page 04

share price pull-back offers another re-entry opportunity. TP unchanged at €110. Sector Updates Page 08

Strategy / Economics Page 11

BUY. H1 revenues were 6% ahead of consensus at €1,168m and EBIT came 2% Global Focus Page 14

ahead at €60m, implying EBIT margin of 5.1%. However, adjusting for non-core Source : Deutsche Bank