Call in the Global Specialist (19/6)

研报英文原文证据摘录

Call in the Global Specialist (19/6)

Shares have lagged recently as decelerating trends into Q2 and rising inflation comparisons

into 2H have put the auto parts group in the show me camp. That said, customers have been deferring maintenance and gas prices

are now falling which along with a generally healthy labor market can be a tailwind. ORLY reports next in the group in late July

and we expect comp trends to inflect later this summer (have already troughed) which can drive the stock higher and re-engage

appetite to own one of the best sectors in Consumer – we look to position ahead of this inflection.

Research: Chris Horvers is OW; most recent note out today (below) recommending to buy best in class (ORLY, AZO) ahead of

the inflection, key note here

Short Interest: 3 ADTV to cover or 3% of free float

Energy: Ian Mitchell, Brendan Henrici, & Anmol Mehta

Buy Technip Energies

- TE has significantly lagged the SXEP ytd, up just 10% vs the index +24% and OFS peers SPM and SUBC + 83% / 66%

respectively. Some of this is the unwind of TE’s stronger relative performance in H224/H125, but most is due to its exposure to

the ME, representing 50% of its backlog. This means to TE, uniquely amongst the European oils space, has actually cut guidance

this year as a result of the conflict, rather than seeing significant upside to earnings and cash flow from resultant higher

commodity prices

- This makes Technip the major beneficiary in the sector of Hormuz reopening, both for its existing projects and the likely high

volume of new remedial work which will become available as a result of damage to energy infra from the conflict. Even before

this additional work, TE is set for a bumper year for order intake, including the JPMe €6bn from Commonwealth LNG and €1bn