DeBLASEing the Trail: Valuation Sense-Check

研报英文原文证据摘录

DeBLASEing the Trail: Valuation Sense-Check

Deutsche Bank

Research

Europe Industry Date

North America 5 July 2026

DeBLASEing the

Industrials Industry Update

Multi - Industry & Electrical Trail

Equipment

Valuation Sense-Check

Nicole DeBlase

Weekly #309: Following recent narrow market leadership, improving macro Research Analyst

signals are driving broader participation across the group +1-212-250-5916

As we wrap up 1H26, we note that the MI/EE group has notably outperformed the

broader market. YTD, our coverage universe has gained 16% at the median, Andrew Krill, CFA

Research Analyst

outpacing the S&P 500 by ~7ppts. Early in the year, leadership was narrowly

+1-212-250-2997

concentrated in AI- and electrification-exposed names, which drove the bulk of the

outperformance. More recently, however, improving macro signals, including a Naim Kaplan

sustained run of >50 ISM readings, alongside de-escalation in the Middle East Research Associate

conflict and constructive management commentary have broadened participation, +1-212-250-5332

with short-cycle names catching a bid and contributing to outperformance. Given Jackson Glenn

the recent shift in performance, we analyze what has been driving stock Research Associate

movements, sense-check valuations in the MI/EE group, and identify potential +1-212-250-2500

opportunities for a relative re-rating/de-rating.

YTD, 23 of the 29 companies we cover have posted gains

Looking at YTD share price performance for our overall coverage universe, ~80% of

the group is up on the year. The best three YTD performers have been VRT (+92%),

GEV (+71%), and NVT (+61%). Conversely, the worst three performers have been

SYM (-28%), PNR (-26%), and BMI (-20%). Dividing the group into baskets, names