European Business Services: Feedback from our rating changes

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European Business Services: Feedback from our rating changes

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European Business Services

Feedback from our rating changes

Industry Overview

Verisure up to Buy, Eurofins down to Underperform 18 May 2026

Last week, we upgraded Verisure to Buy (from Neutral) with a PO of €15 and Equity

downgraded Eurofins to Underperform (also from Neutral) with a PO of €56. While Europe

feedback was mostly uniform on Eurofins, as investors worry about the recovery of Business & Information Services

BioPharma and potential longer-term demand softness in the space, we had more mixed Virginia Montorsi >>

conversations on Verisure. Based on our discussions, the company’s disciplined business Research Analyst

model is, in fact, well understood and appreciated by clients, in our view. However, some MLI44 20(UK)7996 2921

investors remain more cautious about VSURE’s cash generation outlook, as well as the virginia.montorsi@bofa.com

competitive landscape for professionally monitored alarms. Key takeaways are below.

Verisure upgrade: debates on growth and competition YTD: Year-to-date

Last week we upgraded Verisure to Buy (PO €15) as we believe we are approaching a VSURE: Verisure

key inflection point in the equity story (FY26E FCF positive, plus the first dividend

payment), and we see valuation as attractive given the ~30% de-rating YTD (on PE).

Based on our conversations with investors, while most clients recognise VSURE’s strong

and highly disciplined business model, some continue to express concerns around growth

capex versus revenue growth dynamics, as well as VSURE’s subscriber growth trajectory

(below consensus estimates in Q1). Some investors also raised questions about the mid-

term competitive landscape (e.g. changes in marketing/selling regulations, potential AI-