2Q26 Preview: A Strong Quarter

Research evidence excerpt

2Q26 Preview: A Strong Quarter

Idea

July 1, 2026 09:45 PM GMT

Morgan Stanley & Co. International plc+MInvestment Banks | Europe Giulia Aurora Miotto, CFA

Equity Analyst

2Q26 Preview: A Strong Giulia.Aurora.Miotto@morganstanley.comMorgan Stanley Europe S.E., Madrid Branch+ +44 20 7425-5344

Alvaro Serrano

Equity AnalystQuarter Alvaro.Serrano@morganstanley.com +44 20 7425-6942

Morgan Stanley & Co. LLC

What’s Changed

Betsy L. Graseck, CFA

UBS Group AG (UBSG.S) From To Equity Analyst

Price Target SFr 35.00 SFr 39.00 Betsy.Graseck@morganstanley.com +1 212 761-8473

Deutsche Bank (DBKGn.DE) Morgan Stanley & Co. International plc+

Price Target €34.00 €36.00 Franco Insausti, CFA

Top Pick Added - DBKGn.DE Equity Analyst

Franco.Insausti@morganstanley.com +44 20 7677-3769

Barclays Bank (BARC.L)

Price Target 540p 610p Morgan Stanley & Co. LLC

Ryan Kenny, CFA

Julius Baer (BAER.S) Equity Analyst

Price Target SFr 62.00 SFr 66.00 Ryan.Kenny@morganstanley.com +1 212 761-1664

DBK & BARC are most preferred into the quarter, with DBK now Connell J Schmitz

Research Associate

also Top Pick, as we see a disconnect between valuation and Connell.Schmitz@morganstanley.com +1 212 761-6252

improving fundamentals in 2H. Q2 will be strong for UBS too, Morgan Stanley MUFG Securities Co., Ltd.+

but we remain UW on valuation & capital/litigation uncertainty. MiaEquity NagasakaAnalyst

We remain UW on Julius Baer, as we expect weak flows. Mia.Nagasaka@morganstanleymufg.com +81 3 6836-8406

Banks

Key Takeaways Europe

Industry View Attractive

We expect Equities up 19% and FICC up 8%: US IBs growth will be stronger, but

Key research on IBs in the quarter

EU IBs will also print growth ahead of estimates, in our view

European Banks: 2026 Dodd-Frank Act Stress