UK&I Daily Focus: Tuesday, 12th May 2026

Research evidence excerpt

UK&I Daily Focus: Tuesday, 12th May 2026

Deutsche Bank

Research

Europe Strategy Date

12 May 2026

UK&I Daily Focus Periodical

Tuesday, 12th May 2026

Jonathan Jayarajan

LEADING STORIES Research Analyst

UK BANKS - Cautious Optimism +44-20-754-76037

Robert Noble: UK banks generate substantial amount of shareholder value over the Andy Chu, FCA

next 3 years. TNAV and dividends grow in the mid to high teens per year. Higher Research Analyst

rates are a positive for the sector overall and the reaction of spreads so far supports +44-20-754-11360

a better income outlook. Economic and political uncertainty prevents us from

factoring in rate rises at this stage. We remain positive overall. Barclays has shown

a better ability to capture the upside from volatility. Natwest is overly discounted

relative to Lloyds despite greater rate exposure. And Shawbrook/Paragon are too

deeply discounting economic uncertainty.

Figure 1: Table of Contents

VODAFONE GROUP PLC (VOD.L) - Much less Lemony (FY26 and guidance FCF

beat). Buy Leading Stories Page 01

Company Updates Page 04

Robert Grindle: Tgt 155p. Last Close 120.4p, Buy. Q4 25 OSR growth in line, with Sector Update Page 04

FY26 EBITDAaL 1% below and adj FCF 3% ahead. FY 27 guidance is in line on Source : Deutsche Bank

EBITDAaL (light in Europe) though ~3% ahead of cons FCF (in line with DBe).

Further the Co re-introduces mid-term ambitions which though in our view are not

especially onerous, are pleasing to see. Whilst last week’s deal to acquire UK Figure 2: Target Price Change

minorities has deferred buybacks and the final FY26 dividend is in line, we see VOD Company Name Previous New Chg (%)

On the Beach Group PLC [Buy] 345.00 314.00 ź -9.0

increasingly on track for a much less ‘Lemony’ and increasingly self-directed future