The Point for Europe

Research evidence excerpt

The Point for Europe

growth rates (Figure 3) in Primarks’ key markets. The UK LFL comparative base

gets +5pp more challenging 2H vs. 1H and weather trends suggest a later start to

the spring/summer season vs. last year (headwind to 3Q). In Food, we remain

cautious as Branded products continue to underperform Private Label and we see

no apparent signs of recovery in European or World sugar prices.

Monique Pollard | Vandita Sood | Elizabeth Moore | Jamie Bass

KION Group (KGX.DE) - Key debates into the July pre-close

KION's equity story in 2025 was one driven by the potential German macro

recovery supporting the truck business, combined with a pending up-cycle in

global warehouse automation. The slower German macro backdrop and higher

energy costs arguably delayed this thesis, but with energy prices easing and

German macro (slowly) improving, we've seen increased investor interest after

recent under-performance, followed by the >7% share price increase today. Even

after today's move, shares are trading on <0.7x sales and <9x EBIT, close to the

bottom end of the long-term range. We see the bottom end of the guided earnings

range as most likely in 2026, and see some prospect that IT&S orders slightly miss

consensus in Q2; we remain Neutral, but sustained lower energy costs and

increased German fiscal spend could further improve sentiment in the coming

months. We expect KION to host its usual quarterly pre-close in early July.

Martin Wilkie | Avinash Mundhra

Company

Rolls Royce (RR.L) - RR wins Swedish SMR contract - estimate Global TAM to be

worth ~£45bn: Assuming 25-50% share, est ~80-160p per share

This afternoon Rolls-Royce announced it has been selected by Videberg Kraft to

build 3 SMRs in Sweden. This is the second win for Rolls-Royce in the international