Today‘s Morning Meeting

Research evidence excerpt

Today‘s Morning Meeting

Europe Equity Research

Europe First to Market 31 July 2026

Today’s Morning Meeting | Also Published Today | Key Changes | JPM Events | Upcoming Earnings

Today’s Morning Meeting

European Quant Strategy (Khuram Chaudhry)

Style Investing: 5 Signals the Quality Trade is About to Turn.

Value & Quality Up; Momentum, Risk & Growth Down.

Beneath the calm headline indices (MXWO just 3% off highs), a violent style rotation is underway: Korea’s Kospi is down 40%

and the SOX 30%. July flipped YTD leadership on its head: L/S Risk (-7.2%), Momentum (-9.3%) and Growth (-0.5%) reversed

sharply, while Value (+4.8%) and long suffering Quality finally caught a bid. J.P. Morgan's European QMI rotated into

‘Contraction’ phase of the cycle last month. Elsewhere, the USA, China, Asia Pac ex-Japan and GEM are all softening into

‘Slowdown’, confirming the global macro backdrop at risk of reporting a disappointment in growth expectations. We believe this

rotation is only in its early innings: we are overweight Value, Quality & Low Volatility; and underweight Growth & Risk. This

month, we focus on five reasons investors should take a closer look at the merits behind Quality and drill down on why

Momentum is drawing down.

Adyen (Sandeep Deshpande) (ADYEN NA, OW)

Given market cautiousness, meeting expectations would be a positive catalyst for the stock.

Adyen customers that have reported set a favorable stage for Adyen results: In this note we collate the revenue/bookings

of disclosed listed Adyen customers that have already reported results. These customers grew 16.6% in 2Q. In the past 4

quarters, Adyen has outperformed listed customer growth by 7.7% to 11.7% or an average of 9.4%. So if the growth at the non-