Upgrading to EW – The Debate Is Shifting

Research evidence excerpt

Upgrading to EW – The Debate Is Shifting

Exchange-PA

Cyber No Longer a Downgrade Story: with organic growth returning to positive territory to 52 Week range EUR 279.30-212.60

+4.5% in Q2, and management expecting Cyber growth to remain in the MSD range in H2,

investor focus on the business as a source of downside risk appears to be gradually fading.

While these growth rates remain below the levels typically associated with leading cybersecurity

peers, Cyber is no longer a source of earnings downgrades, in our view. We continue to believe

management is currently erring on the side of caution, reflecting the limited visibility inherent in

the business and a desire to rebuild credibility following a period of disappointments after the

Imperva acquisition. Source: LSEG Data & Analytics, Bloomberg

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Space Turning from Headwind to Free Option: As European governments increase their focus

on sovereign space capabilities and industry consolidation discussions continue (BROMO), we European Aerospace & Defence

increasingly view Space as a free option within the equity story. Investors are paying little for its Milene Kerner

potential, yet operational execution continues to improve. Excluding the €153mn impact from +33 (0)1 4458 4002

the cancellation of two geostationary satellites, Space delivered high-teens growth in Q2, while milene.kerner@barclays.com

FY26 guidance for low single-digit growth still includes this one-off. On an underlying basis, BBI, Paris

growth would have remained firmly high single digit. More importantly, Space profitability Afonso Osorio, CFA

+44 (0)20 3134 7016

Barclays Capital Inc. and/or one of its affiliates does and seeks to do business with companies afonso.osorio@barclays.com