Today‘s Morning Meeting

Research evidence excerpt

Europe Equity Research

Europe First to Market

19 August 2026

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

Today’s Morning Meeting

Nokia (Sandeep Deshpande)

Order book points to 2027-2028 earnings estimates that consensus is not modelling

We believe that the market consensus has been too slow to react to the company’s revenue potential in AI and Cloud based on

the order intake and indications on the strength in the market indicated by optical peers. We would also highlight that Nokia has

gained share in IP Networks and the co. indicated that a large part ~40%+ (€1.1bn+) of the orders taken in 2Q26 were IP

Networks related driving another leg of the Nokia Infrastructure business growth apart from the already known Optical

Networks growth. Though supply constraints remain, we believe that Nokia will be able to line up component supply to ramp up

much more significantly in ‘27 and in ‘28. Nokia (OW) remains a top pick with a target price of €18/$21 (~100% potential

upside) with JPMe ‘28 EPS 34.5% ahead of Infront consensus.

RENK (David H Perry, CFA) (R3NK GR, OW)

Raising EPS due to higher 2026 guidance and a bolt-on acquisition; c45% upside potential over next

c18 months

We increase our 2026-30E EPS by 2%/4%/4%/3%/3% (Table 1) to reflect slightly higher guidance for FY26 and the acquisition

of David Brown Defence, both discussed below. We leave our multiples-based Dec-27 PT unchanged at €75, for 45% potential

upside over the next c18 months. Below we also provide an update on our thinking on the RENK investment case, which has

become somewhat more complex vs. 12 months ago.

AFL | RWE (Pavan Mahbubani, CFA) (RWE GR, OW)

More Room to Run - Stay OW

We update our RWE estimates following 2Q26 results and developments including: 1) the acquisition of a bigger stake in

Amprion; 2) the announced guidance upgrade and; 3) the agreement with the US government compensating for money spent

on offshore wind seabed leases. We continue to view RWE’s EPS guidance as conservative both near-term and into the

medium term - our FY26/FY31 estimates are 19%/12% above Bloomberg consensus. In the near term, this is driven by power

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