Silver Sunset: Top EU TMT Talking Points Today - Let‘s Discuss: EU TMT Sector Specialist Commentary

Research evidence excerpt

Silver Sunset: Top EU TMT Talking Points Today - Let‘s Discuss: EU TMT Sector Specialist Commentary

ioning whether a more severe decline in vehicle prices could introduce additional balance

sheet risks. Many long-only investors are still trying to determine whether the recent pullback represents an overreaction and an

attractive entry point, or whether the stock risks spending time in the “penalty box”. We continue to disagree with this view and

rank Auto1 as one of our TOP PICKS across the space and believe there remains meaningful upside as execution continues to

improve. Interestingly, discussions following the recent Capital Markets Day have become more constructive, with even some

bears acknowledging that management’s arguments around structurally firmer used-car prices and the strength of the operating

model were credible. The debate increasingly appears to be shifting from whether the business model works to the magnitude and

durability of AUTO1’s long-term earnings power. **The team and I are heading to Berlin tomorrow as part of our European

Internet Bus Tour where we will tour one of the company’s refurbishment centres and a drop-off location and finish with a meeting

with senior management - We will be hosting 1x1 investor calls for detailed feedback on Monday, June 29th to Wednesday,

July 1st. Please reach out if you would like a slot.**

SEMIS SELL OFF: KOSPI falls but don't panic... as one client said "Volatility is semis is crazy right now but we should expect

to see a pull back as these stocks can't only go up. " One clear conversation that we've seen across the desk today is the knock on

effect from the 9.9% pullback in the KOSPI, which is the fifth-largest percentage decline in the market’s history . While headlines