The Point for Europe

Research evidence excerpt

The Point for Europe

European inflation-linked infrastructure. Overall, we view the transaction

positively, albeit financially marginal, as it supports Eiffage's long-term

concessions strategy of steady portfolio build-out, duration extension and

visibility of cash flows.

Marc Ip Tat Kuen

Persimmon PLC (PSN.L) - Cost Inflation and Demand Moderation Weigh on

Outlook

Persimmon has started FY26 on strong footing despite a challenging market

outlook, with volumes aligning with guidance due. However, underlying demand is

showing signs of softening, characterized by longer conversion times and weaker

enquiry levels, pointing to a more cautious buyer environment where south facing

greater demand challenges than north. Consequently, average selling prices may

come under near-term pressure. Build cost increase is a bigger worry going

forward. While FY26 volumes appear largely de-risked having already secured over

half of its private home completions and nearly all housing association units for

the year, the outlook for FY27 is less certain as slowing demand could lead to

weaker order intake. Cost pressure is expected to build through the 2H26 and

persist into 2027, creating a potential margin squeeze from the combined effect of

softer pricing and rising build costs.

Ephrem Ravi | Omnath Sinh

Freenet (FNTGn.DE) - Q2 focus to remain on Telefónica dispute and German

competition

We update our Freenet model ahead the Q2 results on 12 August. Focus will likely

centre on whether there has been any progress relating to the ongoing dispute

with Telefónica that led to the disappointing full year results in February, albeit

given its materiality (c€50m pa), Freenet confirmed at Q1 that were there any

constructive conclusion to talks, a market announcement would be necessary.