Pepco Group: 3Q26 Trading Update First Take: Another guidance upgrade to spark a positive share price reaction

研报英文原文证据摘录

Pepco Group: 3Q26 Trading Update First Take: Another guidance upgrade to spark a positive share price reaction

J P M O R G A N CEEMEA Equity Research

09 July 2026

Pepco Group Overweight

PCOP.WA, PCO PW

3Q26 Trading Update First Take: Another guidance Price (08 Jul 26):zl36.26

upgrade to spark a positive share price reaction Price Target (Sep-27):zl40.00

Our Take: Pepco’s 3Q26 Trading Update came in ahead of expectations on LFLs CEEMEA Consumer

ACand brought another FY26 guidance upgrade that we expect to trigger a positive Elena Jouronova, CFA

market reaction today. The company is now incorporating Dealz divestment, LFL (971) 4561-2010

momentum on ex FMCG basis continues to be ahead of LPP, margins remain elena.jouronova@jpmorgan.com

robust and EUR 400mn buyback is due to happen up to the end of September. Anastasia Tikhonova

Despite the significant upward revision to consensus profitability estimates over (44-20) 3493-8007

the last few months, we continue to see 2-3% upside risks to consensus on 2026 anastasia.tikhonova@jpmorgan.com

J.P. Morgan Securities plc

EBITDA and Underlying Net Profit on better margins and Dealz divestment.

Pepco remains our preferred play in the space with robust 2026E FCF yield of

5.9%, a high combined residual dividend and buyback yield (10.7% for 2026E),

and the stock trading at 2-6% discount to LPP on 2026-27E P/E (using underlying

earnings).

• Noteworthy Areas: 1) In 3Q26, Pepco’s Group total revenues increased 6.6%

y/y in constant currency, +8.5% on the ex Dealz basis. Group LFL revenues

(excluding Dealz ) were up by 4.2% (exceeding expectations), while on ex

FMCG basis, Group LFL revenues were up 5.4% y/y with double-digit levels

(+15%) in Western Europe. The company moved Dealz to the discontinued