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

Research evidence excerpt

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

fundamentals of the sector itself. Despite wider questions around feasibility and commercial viability, the prevailing view is that,

at least in the near term, narrative and noise will continue outweighing fundamentals. Against this backdrop, investors appear

increasingly reluctant to add risk across European telcos. Positioning has shifted decisively more bearish, with many preferring to

avoid the sector altogether until the satellite narrative subsides, while those remaining active are gravitating towards names with

stronger earnings momentum / clearer consolidation benefits. FlOW ON THE DESK: We have been 1.5x times better to sell

over the past couple of weeks in telcos. Very busy in BT, DTE, and ORA - sellers in all of them. BT flow has been almost paired

off - active on both sides for LOs and HFs. In DTE we have seen LO/institutional flow on the sell side and a few HFs on the other

side. In Orange main flow has been LOs selling the news of SFR break up. We have seen also some rotation out of the Nordics

(tele2, telia, telenor); better sellers in KPN. The only decent buying situations have been in the satellites space (SESG) and in

CLNX (likely hf covering). Notably we were better sellers even in risk-off days when the sector was bid. Akhil has been

marketing over the last 2 weeks so do let me know if you would like to find time to connect up with him next week.

ASML (OW): Underperformance vs US remains a common discussion point with investors. As one client put it to me

today“ASML is becoming the new TSMC” when it comes to performance. We seem to be in a world where ASML underperforms

on UP days and doesn’t have a great day on down days.