European Daily Focus: Thursday, 16th July 2026

Research evidence excerpt

European Daily Focus: Thursday, 16th July 2026

a, with national hydro production 55% below normal. The Denali Therapeutics Inc.

Unwarranted Selloff in Sympathy to BIIB’s Tau ASO for Alzheimer’s; PT to $35

forecast for July/August is for hydro to be 44% below normal. This would translate (+$4)

to Verbund being a further 2.3TWh under budget in Q3, in addition to 2.9TWh under BlackrockBLK 2Q26 Initial Thoughts

budget in Q2. While we forecast €100m of power buybacks in Q2, broadly €150m MortgageWe RemainFinanceCautious on 2Q Mortgage Volumes Despite Strong Results from

of buybacks could be expected in Q3. In our note a month ago, we argued it was BanksEarly Morning Reid

probable Verbund may have to profit warn ahead of results in 2 weeks, unless there Macro Strategy

were offsets. The most feasible meaningful offset open to the operator is to reduce Source : Deutsche Bank

the provision in its guidance for the Austrian profit levy (c.€160m) and social tariff

(c.€40m).

RECOMMENDATION CHANGE

B&M (BMEB.L) - Margin rebuild to provide a cushion - upgrade to Hold

Adam Cochrane: Sell to Hold, Tgt Unch. at 185p. Last Close 193p. The B&M Back

to Basics strategy is a sensible answer to the sustained underperformance under

prior management, in our view. Our previous negative stance was predicated on

inflation pressures on lower-income consumers, pressure on B&M margins from

price investment, value perception needing to be improved, and lack of online offer

making the brand less relevant to changing consumer habits. Whilst not all of these

issues have been resolved, we see less downward pressure on the consumer,

changes to de minimis import duty relief may be accelerated, and we believe that

1Q will represent trough UK LFL alongside a better-than-expected gross margin.