The Point for North America

研报英文原文证据摘录

The Point for North America

go right, particularly at these valuations. Yes, we expect the 2Q26 earnings calls to

focus on the usual suspects: patient volumes, hospital capex, macro-economic

challenges, as well as idiosyncratic company-specific headwinds, and while we

don’t think 2Q26 will assuage these concerns, it could create a holding pattern

from which to build. For the quarter, given the skittish trading environment, we

prefer higher-quality stocks that may be positioned for a catch-up trade, thus our

Top Picks are ABT, DXCM, and SYK, removing EW and ISRG. We are also opening a

Positive Catalyst Watch on GEHC and ISRG and a Negative Catalyst Watch on

HAE.

Joanne Wuensch

US Machinery - Digging Into a Better Construction Outlook

We have updated our proprietary construction starts-to-spending model ahead of

2Q26 earnings, based on May’26 starts and CPIP data. While we anticipate total

non-residential construction spending (buildings + non-buildings) to be flattish in

2026, we see building blocks for an acceleration in 2027 and sustained growth in

2028. This is supported by combined non-res buildings + non-buildings starts

that are up ~20% over the trailing-twelve-months (as of May’26), and up by a

similar amount YTD. We think this bodes well for our construction & access

equipment OEMs and rental names under coverage. URI stands out within our

rental coverage as we think the company can comfortably grow rental revenue by

HSD %’s in 2026-2028, helped by its outsized exposure to mega projects – we

forecast for mega project construction spending to increase ~34% in 2026, ~26%

in 2027, and ~17% in 2028. Click Below to Read the Full Report.

Kyle Menges

Citi’s Forecast for Non-Res Construction Estimated Market Outgrowth Stemming from

Spending Mega Projects