Today‘s Morning Meeting

Research evidence excerpt

Today‘s Morning Meeting

Europe Equity Research

Europe First to Market 24 June 2026

Today’s Morning Meeting | Also Published Today | Key Changes | JPM Events | Upcoming Earnings

Today’s Morning Meeting

MTU Aero Engines (David H Perry, CFA) (MTX GR, OW)

Outlook improving on multiple fronts; we see c40% upside over next 18 months

We believe that the outlook for MTU is improving on multiple fronts. First, the significant drop in the price of jet fuel is a clear

positive for all the European Civil Aero (ECA) engine companies. Second, in the last month the $ has rallied from $1.18/€1 to

$1/€1.14. Third, last week we hosted MTU’s CEO at our Industrials Conference and came away more confident on the outlook

for the GTF programme. Finally, again following our meeting last week, we are more confident about MTU’s medium-term FCF

and we raise our 2029-30 FCF estimates. Our EPS estimates are largely unchanged (Table 1) and our multiples-based Dec-27

PT of €465 is unchanged, implying c40% potential upside over the next 18 months.

Sage (Toby Ogg) (SGE LN, OW)

Growth continues to trend above expectations; scope for modest upside to consensus organic

growth

Whilst the software sector continues to face challenges, we see Sage as one of the better positioned within our coverage near-

term given scope for continued steady upward revisions to consensus organic revenue growth estimates. Sage has been

outperforming consensus growth estimates for a number of quarters now and has seen its organic revenue growth y/y

accelerate from 9.0% in Q3’25 to 10.3% in Q2’26. While AI-native accounting competitors remain a concern for investors, we

think actual revenue generation from these players remains small and their focus is more concentrated in the SaaS vertical,