GS EUROPEAN EXPRESS: Utilities and SOH | Rheinmetall | Smith & Nephew | Orange | HVAC | Argenx | Macro | Global | Corporate Access

Research evidence excerpt

GS EUROPEAN EXPRESS: Utilities and SOH | Rheinmetall | Smith & Nephew | Orange | HVAC | Argenx | Macro | Global | Corporate Access

Equity Research

25 June 2026 | 6:41AM BST

GS EUROPEAN EXPRESS: Utilities and SOH | Rheinmetall | Smith &

Nephew | Orange | HVAC | Argenx | Macro | Global | Corporate Access

European Utilities: Hormuz re-opening: what to do with the sector - We highlight Sahar Islam

+44(20)7051-4935 |

why Utilities underperformance may continue near term — a potential peace deal sahar.islam@gs.com

Goldman Sachs International

could prolong tactical rotation into sectors geared to a Hormuz reopening, while

falling commodities could weigh on IPPs and Renewable Developers. And yet, we

believe the sector is nearing a turning point, underpinned by five drivers: positive

power demand growth accelerating via electrification; datacenters coming to Europe

with ~500 GW of grid connection requests; a growing electricity infrastructure

deficit boosting returns in renewables and FlexGen; €2.5–3.5 trn European

electrification investment needs over ten years; and US renewable returns at historic

highs of c.10–11% project IRRs. We see an earnings super-cycle supporting high

single digit to low double digit average earnings growth into the 2030s. Key picks

include Enel (Buy, on Conviction List), RWE (Buy), EDPR (Buy) and Naturgy (Buy, on

Conviction List). (Alberto Gandolfi)

Rheinmetall (RHMG.DE): F126 programme cancellation - FAQs and market

feedback - Rheinmetall shares were down 19% yesterday (24 June) following reports

that Germany will terminate the F126 frigate programme and instead procure MEKO

A-200 frigates from TKMS. This is a clear negative for confidence in Rheinmetall’s

near-term order pipeline and has raised investor questions around management