JPM | Industrial Strength Morning Messages: Previews, Atlas Copco should benefit from strong semi-cap trends

Research evidence excerpt

JPM | Industrial Strength Morning Messages: Previews, Atlas Copco should benefit from strong semi-cap trends

s) while Electrolux gets an 11% boost to the current year on the back of tariff refunds. Building

Materials paints a less constructive picture - although the feedback on Heidelberg Materials suggests investors are more

frustrated with poor execution than they are weak end market conditions. Zaim puts a LSD upgrade through on

Howden Joinery while Travis Perkins gets a similarly sized downgrade. Andy Burnham’s council house building intents,

if the money can be found, would be helpful to the likes of Travis.

Pan European Industrials Research

1. Siemens - Early look at Q3’26: Expect a continuation of the strong trends seen ytd. Remain OW/AFL.- Phil Buller here:

Siemens will report Q3’26 results on August 6. We have updated our model and view incorporating our discussions with the

company, top-down data, peer read-across and takeaways from our Industrials Conference (here). We continue to see 1)

immaterial direct and indirect disruption from the Middle East, given that cost inflation appears to have been offset by swift

pricing actions; 2) ongoing strength in SI thanks to Data Centers and utility; and 3) further evidence of a recovery in China

discrete. The net of these items makes for an increasingly positive outlook into and beyond Q3 and well into 2027, in our

view. Our fine-tuned quarterly estimates are detailed below; our annual estimates are broadly unchanged (c+1% on average),

with our Street-high price target increasing to €345 (from €335) as we roll forward to Dec-27 (from Jun-27). Siemens remains

on our AFL.

2. Siemens Energy - Early look at Q3’26 - Expect a strong Q3 with a medium-term update with the extended Q4 call- Phil