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

ect the company to report sales of €1,058m. Overall, while investors have little

doubt the underlying story remains very strong, confidence in the share price reaction remains low until the broader semicap tape

improves. See Sandeep’s preview HERE

WOLTERS KLUWER (OW): Interest is building… Daniel Kerven and I have continued to see increasing investor

engagement across both RELX and Wolters following his recent UPGRADE to OW. The discussion has increasingly shifted

away from whether AI represents a structural threat and towards whether these businesses are, in fact, long-term beneficiaries of

AI adoption. Dan’s view is that rather than replacing proprietary content, AI is enhancing the value of their existing systems of

record, workflows and mission-critical platforms, allowing both companies to increase product value, automate more customer

processes and ultimately expand their addressable markets. Investors are already pointing to RELX’s accelerating Legal and STM

growth as evidence this is beginning to play out, while expectations are building for a similar acceleration across Wolters’ Legal

and Tax businesses in the second half. Wolters is still in the broken business basket, but positioning is also becoming increasingly

supportive, with hedge funds showing greater caution around remaining short after the sharp re-rating across several perceived

“AI loser” stocks, while long-only investors who previously de-risked the names (or who weren’t involved) are starting to revisit

the investment case as valuations remain well below US peers despite resilient fundamentals and that a reiteration of FY results

and H2 acceleration will bring more investors back to review the story and question that assumption.