EEMEA Equity Strategy: Stock Ideas Away from the Global AI/Tech Volatility

Research evidence excerpt

EEMEA Equity Strategy: Stock Ideas Away from the Global AI/Tech Volatility

ormance remains intact, supported by EU fund-stimulated OTP HB OTP Banks OW Top Pick

investment. We recommend three OW-rated Greek banks: Piraeus, Eurobank and TPEIR GA Piraeus Banks OW

EUROB GA Eurobank Banks OW

Alpha. Our EU Banks team prefers Piraeus and Eurobank into 2Q earnings, given ALPHA GA Alpha Bank Banks OW

greater scope to surprise consensus, while high-beta Alpha Bank's business plan PPC GA PPC Utilities OW

ALE PW Allegro eCommerce OW Top Pick

update could catalyse upgrades. PPC (OW-rated), Greece and Romania's largest South Africa - De-escalation Beneficiary

energy supplier, should also benefit from the EU-fund-driven investment wave, FSR SJ FirstRand Banks OW Top Pick

SLM SJ Sanlam Insurance OW

supporting its CAPEX growth. In Hungary, we like OTP (OW-rated, Top Pick) on the

HAR SJ Harmony Gold Gold OW

post-election political and economic shift and solid loan and deposit volume trends. PPH SJ Pepkor Retail OW

Furthermore, OTP announced its plans to acquire Luminor, one of the three largest GCC - Energy/Infrastructure CAPEX

ADNOCDRI DH ADNOC Drilling Energy OW

banking groups in the Baltics; our EU Banks analyst views this as modestly positive ADES AB ADES Energy OW

for share performance. Despite strong returns (39% YTD in USD), we still see OTP ADCB DH ADCB Banks OW Top Pick

ADIB DH ADIB Banks OW

as a multi-year compounder. In Poland, we remain EW: macro resilience appears

Refining Strength

largely priced into banks' valuations, while fiscal risks could emerge ahead of TUPRS TI Tupras Energy EW

November 2027 parliamentary elections. This may prompt rotation away from Source: Morgan Stanley Research

Banks to Polish consumer names, especially Discretionary, as elections have