European Daily Focus: Thursday, 11th June 2026

Research evidence excerpt

European Daily Focus: Thursday, 11th June 2026

11 June 2026

European Daily Focus

end. We now project a net cash of €163m, versus our prior estimate of a net debt

of €536m. This is purely an accounting treatment and needs to be factored into

valuations. The bonds will also qualify for a 50% equity treatment for the calculation

of the credit ratios by Moody’s, which has already indicated that this will have a

modestly positive impact on Alstom’s Baa3 rating.

RASPBERRY PI (RPI.L) - Pi too sweet

Robert Sanders: Tgt 550p to 650p. Last Close 833p, Hold. RPI's positive trading

update last week initially led to the shares shooting upwards, but that has quickly

reversed. We think part of the reason is that management are actively trying to

temper expectations into H2 and 2028 given that a lot of the gross profit beat in H1

was down to low-cost memories coming into the P&L at a time of large board price

increases, a margin boost that is likely to dissipate over time. This is likely to limit the

extent of a sustainable profit upgrade unless board prices keep shooting upwards.

In addition, we remain concerned that some are exaggerating the significance of AI

enthusiasts in their spare time using RPIs for OpenClaw. In our view, the primary

source of the resilience of SBC volumes remains RPI's successful memory

stockpiling in 2025, which is allowing the company to defy elasticity impacts and

take share at the expense of smaller competitors. In addition, the company saw

some uptick in demand for memory-rich boards for non-consumer usage, again

unrelated to "AI in the home", which likely partly reflects safety stock building

(partly geopolitical driven) and given worries about rising board prices.

WH SMITH (SMWH.L) - Profit warning and 20% placing

Tim Barrett: Tgt 550p to 390p.