European Equity Strategy: Simply Switzerland: You Can‘t Have the Füfer and the Weggli

Research evidence excerpt

European Equity Strategy: Simply Switzerland: You Can‘t Have the Füfer and the Weggli

Global Research

22 July 2026ab

European Equity Strategy Equity Strategy

Europe including UKSimply Switzerland: You Can’t Have the Füfer

and the Weggli Sutanya Chedda

Strategist

sutanya.chedda@ubs.com

+44-20-7567 8155

Better fundamentals, weaker sponsorship Gerry Fowler

As the Swiss saying goes, you cannot have the Füfer and the Weggli. In other words, Strategist

investors cannot have it both ways. This month’s Swiss equity setup presents that trade- gerry.fowler@ubs.com

+44-20-7567 5490

off clearly: stronger earnings are not accompanied by supportive flows and an

undemanding valuation. FY26 and FY27 estimates are now higher both month on Nicolas Le Roux

month and year to date, revision breadth has turned positive and the improvement has Strategist

extended to large caps. The offset is a less coherent tactical backdrop. PMI momentum nicolas.le-roux@ubs.com

+33-14-953 2118

has cooled, passive flows have weakened and the valuation premium remains

concentrated. This leaves a more fundamentally anchored but still selective opportunity Franziska Fischer

set, favouring areas where revisions, quality and valuation support coincide. REVS points Economist

to Sensirion, Ascom and VAT Group at the stock level, with Data Centre and AI franziska.fischer@ubs.com

+41-44-239 2054

Infrastructure and Automation and Electrification retaining the strongest thematic

scores. Felix Huefner

Economist

Regime: Two speeds, not one slowdown felix.huefner@ubs.com

+49-69-1369 8280

The macro signal has become more balanced rather than simply weaker. The SPI-

weighted PMI has moved into a slowdown regime, but the underlying detail is less

defensive than the headline: manufacturing remains in expansion and its June