JPM | FTM | Today’s Research | Europe

Research evidence excerpt

JPM | FTM | Today’s Research | Europe

Europe Equity Research

Europe First to Market 11 June 2026

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

Today’s Morning Meeting

PPC Group (Anna Antonova, CFA) (PPC GA, OW, PT €25.00)

New equity, new growth phase - remain OW

At end-May, PPC had completed the share capital increase, which was upscaled to €4.25bn (vs original € 4bn target), and

overall the company raised a total of €4.5bn in gross proceeds (incl. €250m from the sale of existing Treasury shares). The

offer price of €18.63/sh provided a reasonably priced entry point for new investors, in our view - we calculate it implied 2028E

P/E of 11x (c. 20% discount vs EU Integrated peers avg) and a dividend yield of 6.4%. As we discussed earlier (here), the

transaction will help PPC to strategically scale up the business and finance its €24bn capex program 2026-30 to deliver

targeted peer-leading c. 20%+ earnings growth, whilst keeping leverage under control (ND/EBITDA <3.5x). While execution will

be key to watch going forward, we note that management already has an established historical track record of delivery, while

PPC’s management LTIP also aligns incentives with minority shareholder interests well, in our view. As we incorporate the

updated (more ambitious) strategic targets into our model, we upgrade our mid-term earnings forecasts by on avg +10% (we

currently sit +5% vs BBG mean consensus) and as a result our Dec’27 PT increases +19% to €25/sh (vs €21/sh prev.). We

remain OW on PPC, as we see it offering an attractive combination of growth and dividends in the European Utilities space and

a thematic exposure to the energy transition trends in Greece and Central Southeast Europe.

UniCredit (Delphine Lee) (UCG IM, OW)